Kuo: Apple Could Spend $4.75 Billion on AI Servers in 2024
Apple is expected to spend several billion on hardware to support its artificial intelligence development in 2024, according to speculation from Apple analyst Ming-Chi Kuo. Kuo expects Apple to spend "at least" $620 million on servers in 2023 and $4.75 billion on servers in 2024.
Apple could purchase between 2,000 and 3,000 servers this year, and up to 20,000 next year. Kuo thinks that Apple is purchasing servers equipped with Nvidia's HGX H100 8-GPU for generative AI training, with the company planning to upgrade to B100 next year. Nvidia calls its H100 an AI supercomputing platform, and each one is priced at around $250,000.
Kuo appears to be guessing at Apple's purchasing plans here, and he says that he expects Apple will use AI servers it is purchasing and installing itself to train large language models rather than virtual hosting from other cloud service providers for improved security and privacy. He does say that Apple could develop its own server chips to save on server costs, but he has seen no evidence that Apple is doing that at this time.
While Apple appears to be making a major investment into AI, Apple's server purchasing will fall behind other companies like Meta and Microsoft. Apple will also need to invest in labor costs, infrastructure, and more, and Kuo suggests that Apple will need to spend several billion dollars annually to have a chance of catching up with competitors. Kuo claims that he is "genuinely concerned" about the future of Apple's generative AI business if Apple spends just a billion dollars a year as suggested by Bloomberg's Mark Gurman.
Over the weekend, Gurman said that Apple is on track to spend $1 billion per year on its AI efforts. Gurman says that Apple is working on a new, smarter version of Siri and is aiming to integrate AI into many Apple apps.
Popular Stories
Apple today introduced the iPhone 16e, its newest entry-level smartphone. The device succeeds the third-generation iPhone SE, which has now been discontinued.
The iPhone 16e features a larger 6.1-inch OLED display, up from a 4.7-inch LCD on the iPhone SE. The display has a notch for Face ID, and this means that Apple no longer sells any iPhones with a Touch ID fingerprint button, marking the ...
Over the years, Apple has switched from an aluminum frame to a stainless steel frame to a titanium frame for its highest-end iPhones. And now, it has been rumored that Apple will go back to using aluminum for three out of four iPhone 17 models.
In an investor note with research firm GF Securities, obtained by MacRumors this week, Apple supply chain analyst Jeff Pu said the iPhone 17, iPhone...
In a social media post today, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19.
"Get ready to meet the newest member of the family," he said, with an #AppleLaunch hashtag.
The post includes a short video with an animated Apple logo inside a circle.
Cook did not provide an exact time for the launch, or share any other specific details, so...
Apple is set to "significantly change" the iPhone's design language later this year, according to a Weibo leaker.
In a new post, the user known "Digital Chat Station" said that the iPhone's design is "starting to change significantly" this year. The "iPhone 17 Air" reportedly features a "horizontal, bar-shaped" design on the rear, likely referring to an elongated camera bump. On the other...
Wednesday February 19, 2025 11:38 am PST by
Juli CloverFollowing the launch of the iPhone 16e, Apple updated its iOS 18, iPadOS 18, and macOS Sequoia pages to give a narrower timeline on when the next updates are set to launch.
All three pages now state that new Apple Intelligence features and languages will launch in early April, an update from the more broader April timeframe that Apple provided before. The next major point updates will be iOS ...
Now that Apple has announced its new more affordable iPhone 16e, our thoughts turn to what else we are expecting from the company this spring.
There are three product categories that we are definitely expecting to get upgraded before spring has ended. Keep reading to learn what they are. If we're lucky, Apple might make a surprise announcement about a completely new product category.
M4...
The first iOS 18.4 beta for iPhones should be just around the corner, and the update is expected to include many new features and changes.
Bloomberg's Mark Gurman expects the iOS 18.4 beta to be released by next week.
Below, we outline what to expect from iOS 18.4 so far.
Apple Intelligence for Siri
Siri is expected to get several enhancements powered by Apple Intelligence on iOS...
Apple released the HomePod mini in November 2020, followed by the AirTag in May 2021, and both still remain first-generation products.
Fortunately, rumors suggest that both the HomePod mini and the AirTag will finally be updated at some point this year.
Below, we recap rumors about the HomePod mini 2 and AirTag 2.
HomePod mini 2
In January 2025, Bloomberg's Mark Gurman said Apple is ...
