Apple to Invest Around $5 Billion to Develop ChatGPT Rival

• Google leads the way in incorporating generative AI features into phones, with Samsung and Apple expected to do the same.
• Apple is investing heavily in AI servers to catch up to competitors in generative AI.
• Microsoft invested $10 billion in ChatGPT, integrating its capabilities into Bing Chat.
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Phone manufacturers are slowly adding generative AI capabilities to their phones, with Google currently in the lead. Samsung is anticipated to incorporate similar functions in its upcoming Galaxy S24, and Apple is said to be preparing for this as well.

Mark Gurman from Bloomberg reports that Apple is actively developing its next major operating system update, iOS 18, which will feature integration with generative AI.

Apple to Invest Around $5 Billion to Develop ChatGPT Rival

Mark Gurman mentions that Apple was caught off guard when competitors introduced AI features in response to the ChatGPT trend. While Apple has been working on similar capabilities for years, it hasn’t been successful in launching them publicly. However, the company is now preparing to make significant investments in AI servers using Nvidia HGX H100 GPUs.

In addition, analyst Ming-Chi Kuo asserts that Apple has already spent over $620 million on AI servers, and there are more substantial investments on the horizon. It’s reported that the company is preparing to commit up to $4.75 billion towards AI servers in the upcoming year to gain a competitive advantage over rivals like Microsoft and Google, both of which have made significant advancements in generative AI.

Microsoft made a substantial $10 billion investment in ChatGPT and incorporated its capabilities into its search engine to create Bing Chat. They also launched an iOS and Android app for Bing Chat earlier this year, which saw rapid success. Meanwhile, Google introduced Bard and introduced various creative AI features with Android 14 and the Pixel 8 phones.

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Kuo anticipates that Apple will acquire between 2,000 and 3,000 AI servers this year, and this figure could surge to as many as 20,000 next year. Furthermore, Apple might consider a transition from Nvidia’s H100 to B100 GPUs and work on designing its own server chips to reduce expenses.

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The practical outcome of Apple’s AI efforts is still uncertain, but it’s likely that we’ll witness the introduction of a new chatbot and possibly an image generator akin to DALL-E.

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