Apple is predicted to spend a number of billion on {hardware} to help its synthetic intelligence growth in 2024, in response to hypothesis from Apple analyst Ming-Chi Kuo. Kuo expects Apple to spend “a minimum of” $620 million on servers in 2023 and $4.75 billion on servers in 2024.

hey siri banner apple
Apple might buy between 2,000 and three,000 servers this 12 months, and as much as 20,000 subsequent 12 months. Kuo thinks that Apple is buying servers geared up with Nvidia’s HGX H100 8-GPU for generative AI coaching, with the corporate planning to improve to B100 subsequent 12 months. Nvidia calls its H100 an AI supercomputing platform, and every one 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 giant language fashions relatively than digital internet hosting from different cloud service suppliers for improved safety and privateness. He does say that Apple might develop its personal server chips to avoid wasting on server prices, however he has seen no proof that Apple is doing that at the moment.

Whereas Apple seems to be making a serious funding into AI, Apple’s server buying will fall behind different firms like Meta and Microsoft. Apple may 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 opponents. 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 12 months as prompt by Bloomberg‘s Mark Gurman.

Over the weekend, Gurman mentioned that Apple is on monitor to spend $1 billion per 12 months 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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