Apple Plans to Invest Billions in Hardware for AI Development, According to Analyst
According to renowned Apple analyst Ming-Chi Kuo, it is expected that Apple will allocate a substantial budget towards hardware to support its artificial intelligence (AI) development efforts in 2024. Kuo’s predictions indicate that Apple will spend a staggering $620 million on servers in 2023, with that number skyrocketing to $4.75 billion in 2024.
To achieve their AI goals, Apple has plans to acquire between 2,000 and 3,000 servers this year alone, followed by an estimated 20,000 servers next year. These servers will be equipped with Nvidia’s HGX H100 8-GPU, which is specifically designed for generative AI training. Apple aims to upgrade to the B100, another advanced server model, in the following year.
One notable aspect of Apple’s AI strategy is their decision to utilize their own AI servers for training large language models, rather than relying on virtual hosting services from other cloud providers. This move, as Kuo suggests, is intended to enhance security and privacy measures. However, it remains unclear if Apple intends to develop its own server chips to further streamline costs.
Despite Apple’s ambitious investment plans, it is anticipated that they may lag behind competitors such as Meta and Microsoft in terms of AI server purchasing. To remain competitive, Apple will also need to allocate resources towards labor costs and infrastructure development.
Kuo also expresses concerns about the future of Apple’s generative AI business if they only invest $1 billion per year, as suggested by Bloomberg’s Mark Gurman. However, Gurman claims that Apple is currently working on a more sophisticated version of Siri, with plans to integrate AI capabilities into various Apple applications.
In conclusion, Apple is set to make significant strides in the field of AI development by investing billions in hardware. Their decision to utilize their own servers and prioritize security and privacy aims to set them apart from their competitors. However, their success hinges on the level of investment and strategic decisions they make moving forward.
