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.

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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.

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Top Rated Comments

vegetassj4 Avatar
8 months ago
How much is Tim Apple going to spend?

one BEEEEELION dollars

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Score: 40 Votes (Like | Disagree)
JPack Avatar
8 months ago

Okay yeah this one is definitely smells like a honeypot rumor. I seriously doubt Apple would spend that much on AI when not even Microsoft spends that much on their AI servers. Hell Microsoft's AI spending hasn't even crossed a billion.
Microsoft doesn't have an ecosystem lock compared to Apple.

Apple Music, TV, News, Maps, iMessage, iPhone, Mac, etc. All of those working together using one AI is worth spending on.
Score: 14 Votes (Like | Disagree)
djcerla Avatar
8 months ago
From the very reliable guy who predicted no new Macs in 2023 on Friday.

Also the same guy who was absolutely positive about titanium = overheating.
Score: 13 Votes (Like | Disagree)
zorinlynx Avatar
8 months ago

Okay … interesting … so could that maybe also mean, that SIRI would start making sense and being really useful for the first time ever!?
Nah, not quite. Siri will SOUND like it's making sense and give you a very eloquent, detailed answer which will be completely wrong in every way.

Why do people trust generative AI? It's the latest stupid fad in the tech industry like NFTs were. It's going to make our current torrent of misinformation worse and cause a lot more harm than good. Just, no.
Score: 13 Votes (Like | Disagree)
DHagan4755 Avatar
8 months ago
Will Siri still be saying, "Here are some web results I found?" :p
Score: 8 Votes (Like | Disagree)
SemperMac Avatar
8 months ago
Okay … interesting … so could that maybe also mean, that SIRI would start making sense and being really useful for the first time ever!?
Score: 8 Votes (Like | Disagree)