Apple to invest nearly $5 Billion in ChatGPT rival

Apple-to-invest-nearly-5-billion-in-chatgpt-rival

At present, Google is taking the lead in incorporating generative AI capabilities into smartphones, while other phone manufacturers are following suit gradually.

Generative AI capabilities

To reports, Samsung is set to introduce similar functions in its upcoming Galaxy S24, while Apple is said to be preparing for the same.

Mark Gurman

Mark Gurman said, Apple is currently in the process of developing its upcoming major OS update known as iOS 18, which will incorporate generative AI technology.

A/C to Gurman, the Cupertino giant was caught off guard by rival companies who introduced AI features after the rise of ChatGPT.

Despite years of effort, Apple has yet to achieve success in implementing similar features for a public release.

However, the phone manufacturer is currently strategizing to make substantial investments in AI servers utilizing Nvidia HGX H100 GPUs.

Nvidia HGX H100

In addition, analyst Ming-Chi Kuo asserts that Apple’s expenditure on AI servers has already surpassed $620 million, with more substantial investments on the horizon.

The company is allegedly considering investing a staggering $4.75 billion in AI servers in the upcoming year.

This strategic move aims to gain a competitive advantage over rivals such as Microsoft and Google, both renowned for their extensive work in generative AI.

Microsoft’s $10 Billion

Microsoft has made a substantial investment of $10 billion in ChatGPT and seamlessly incorporated its innovative capabilities into the search engine Bing, resulting in the birth of a new communication platform called Bing Chat.

Earlier this year, an app for Bing Chat was launched for iOS and Android, and it swiftly shattered records.

Google, however, has integrated Bard and various innovative AI functionalities with the recent Android 14 update and the newly-released Pixel 8 smartphones.

According to Kuo’s forecast, Apple is expected to acquire around 2,000 to 3,000 AI servers in the present year.

However, there is a possibility for this figure to surge up to 20,000 in the following year.

Moreover, considering cost-saving measures, Apple has the potential to transition from Nvidia’s H100 GPUs to B100 GPUs while simultaneously working on the development of its server chips.

The exact form of Apple’s AI initiatives is yet to be revealed. However, we anticipate the introduction of a novel chatbot and possibly a DALL E-esque image generator.

To read our blog on “Google’s AI making traffic lights smarter to lessen delays,” click here

Muhammad Kamal
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