Apple is expected to spend a significant amount on generative AI in 2024. Analyst Ming-Chi Kuo confirms that Apple plans to introduce generative AI features with iOS 18 next year. The company aims to catch up with other tech companies in this area. Apple is reportedly building AI servers and combining cloud-based AI with on-device data processing to roll out generative AI to iPhone and iPad users by late 2024. In 2023 and 2024, Apple plans to purchase thousands of AI servers, representing a small percentage of worldwide AI server shipments. To support its generative AI feature, Apple will purchase Nvidia’s HGX H100 8-GPU, which is designed for generative AI training and inference. This will result in significant spending on AI server purchases, with at least $620 million in 2023 and $4.75 billion in 2024. However, Apple’s AI server purchases still lag behind its competitors, such as Meta. Apple is likely to use its own AI servers for training language models, prioritizing security, privacy, and design flexibility. It will need to offer superior software development capabilities to catch up with other tech firms. The estimated costs do not include labor and infrastructure operating costs, indicating that Apple may need to invest even more to achieve its goals.
