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 released iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. Apple has added a handful of new non-AI related feature controls as...
Wednesday December 18, 2024 11:39 am PST by
Juli CloverApple is no longer planning to launch a hardware subscription service that would let customers "subscribe" to get a new iPhone each year, reports Bloomberg's Mark Gurman.
Gurman first shared rumors about Apple's work on a hardware subscription service back in 2022, and at the time, he said that Apple wanted to develop a simple system that would allow customers to pay a monthly fee to gain...
Contrary to recent reports, the iPhone 17 Pro will not feature a horizontal camera layout, according to the leaker known as "Instant Digital."
In a new post on Weibo, the leaker said that a source has confirmed that while the appearance of the back of the iPhone 17 Pro has indeed changed, the layout of the three cameras is "still triangular," rather than the "horizontal bar spread on the...
Wednesday December 18, 2024 10:05 am PST by
Juli CloverElevation Lab today announced the launch of TimeCapsule, an innovative and simple solution for increasing the battery life of Apple's AirTag.
Priced at $20, TimeCapsule is an AirTag enclosure that houses two AA batteries that offer 14x more battery capacity than the CR2032 battery that the AirTag runs on. It works by attaching the AirTag's upper housing to the built-in custom contact in the...
The current Apple TV 4K was released more than two years ago, so the streaming device is becoming due for a hardware upgrade soon. Fortunately, it was recently rumored that a new Apple TV will launch at some point next year.
Below, we recap rumors about the next-generation Apple TV.
Bloomberg's Mark Gurman last week reported that Apple has been working on its own combined Wi-Fi and...
Blackmagic today announced that its URSA Cine Immersive camera is now available for pre-order, with deliveries set to start late in the first quarter of 2025. Blackmagic says that this is the world's first commercial camera system designed to capture 3D content for the Vision Pro.
The URSA Cine Immersive camera was first introduced in June, but it has not been available for purchase until...
Apple is planning a series of "major design" and "format changes" for iPhones over the next few years, according to The Wall Street Journal's Aaron Tilley and Yang Jie.
The paywalled report published today corroborated the widely-rumored "iPhone 17 Air" with an "ultrathin" design that is thinner than current iPhone models. The report did not mention a specific measurement, but previous...
Apple launched the controversial "trashcan" Mac Pro eleven years ago today, introducing one of its most criticized designs that persisted through a period of widespread discontentment with the Mac lineup.
The redesign took the Mac Pro in an entirely new direction, spearheaded by a polished aluminum cylindrical design that became unofficially dubbed the "trashcan" in the Mac community. All of ...
