Apple is gearing up to compete with Google and Microsoft in the field of artificial intelligence (AI).
The company is expected to invest billions in AI technology, including AI chips from Nvidia.
Analyst Ming-Chi Kuo predicts Apple will spend $620 million on AI servers this year, rising to $4.75 billion next year.
These estimates are based on projected purchases of AI server units, potentially powered by eight Nvidia H100 chips.
Due to the current shortage of Nvidia chips, major purchases are expected to occur in 2024.
Despite these investments, Apple's AI spending is still below that of rivals like Meta Platforms (formerly Facebook).
Apple has been relatively secretive about its AI goals and offerings.
Reports suggest Apple is planning to allocate around $1 billion annually to develop generative AI, including an enhanced version of Siri.
Apple's plans for AI may become clearer with its fiscal fourth-quarter earnings report on November 2.
The company is striving to enhance its AI capabilities to remain competitive in the tech industry.