Apple is anticipated to spend a number of billion on {hardware} to help its synthetic intelligence growth in 2024, in accordance with hypothesis from Apple analyst Ming-Chi Kuo. Kuo expects Apple to spend “not less than” $620 million on servers in 2023 and $4.75 billion on servers in 2024.
Apple may buy between 2,000 and three,000 servers this yr, and as much as 20,000 subsequent yr. Kuo thinks that Apple is buying servers outfitted with Nvidia’s HGX H100 8-GPU for generative AI coaching, with the corporate planning to improve to B100 subsequent yr. Nvidia calls its H100 an AI supercomputing platform, and each is priced at round $250,000.
Kuo seems to be guessing at Apple’s buying plans right here, and he says that he expects Apple will use AI servers it’s buying and putting in itself to coach massive language fashions slightly than digital internet hosting from different cloud service suppliers for improved safety and privateness. He does say that Apple may develop its personal server chips to save lots of on server prices, however he has seen no proof that Apple is doing that right now.
Whereas Apple seems to be making a significant funding into AI, Apple’s server buying will fall behind different corporations like Meta and Microsoft. Apple can even must put money into labor prices, infrastructure, and extra, and Kuo means that Apple might want to spend a number of billion {dollars} yearly to have an opportunity of catching up with rivals. Kuo claims that he’s “genuinely involved” about the way forward for Apple’s generative AI enterprise if Apple spends only a billion {dollars} a yr as advised by Bloomberg‘s Mark Gurman.
Over the weekend, Gurman stated that Apple is on observe to spend $1 billion per yr on its AI efforts. Gurman says that Apple is engaged on a brand new, smarter model of Siri and is aiming to combine AI into many Apple apps.
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