Phone makers are gradually introducing generative AI features to their handsets with Google currently leading the pack. Samsung is also expected to introduce similar functions in its upcoming Galaxy S24 and Apple is reportedly readying up for the same.
Bloomberg’s Mark Gurman says that Apple is already working on its next big OS update, iOS 18 and it is going to be integrated with generative AI.
He adds that the Cupertino giant didn’t see it coming when rival companies introduced AI features following the rise of ChatGPT. Apple has been working on similar features for years but has yet to see any success when it comes to a public launch. But now the phone maker is planning to invest heavily into AI servers powered by Nvidia HGX H100 GPUs.
Furthermore, analyst Ming-Chi Kuo claims that Apple has already spent over $620 million on AI servers, but there is plenty more to come. The company is reportedly planning to invest up to $4.75 billion in AI servers next year so it gets an edge against rivals including Microsoft and Google, both of whom have worked extensively on generative AI.
Microsoft invested $10 billion into ChatGPT and integrated its features into its search engine to create Bing Chat. An app for Bing Chat was released for iOS and Android earlier this year and it quickly broke records. Google, on the other hand, has Bard and several creative AI features have been introduced with Android 14 and the Pixel 8 phones already.
Kuo predicts that Apple will buy up to 2,000 to 3,000 AI servers this year, but this number could increase as much as 20,000 next year. Additionally, Apple could switch from Nvidia’s H100 to B100 GPUs and develop its own server chips to save costs.
It remains to be seen how Apple’s AI endeavors will look in practice, but we expect to see a new chatbot and most likely an image generator similar to DALL E.
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