For more than a year, analysts have been pressing Apple CEO Tim Cook for details on the company’s artificial intelligence (AI) plans. According to Reuters, Cook recently suggested that those details would be revealed soon. “[We] we remain positive about our opportunities in generative AI and are making significant investments,” Cook told Reuters.
Apple may not have a massive artificial intelligence bill
According to Reuters, while Apple’s Huge Tech competitors such as Google and Microsoft are pouring money into building data centers to support their AI services, Apple is taking a different approach. Apple spent a much smaller $10 billion on capital expenditures in 2023 compared to its rivals’ $12 billion to $40 billion range. The focus on on-device processing reflects Apple’s long-standing strategy of working with suppliers to manage production costs, Reuters says.
Apple is expected to showcase modern AI features at an upcoming software conference and integrate AI-enabled chips into its products, but investors shouldn’t expect significant changes to its capital spending practices, according to a Reuters report. Apple CFO Luca Maestri said the company will likely continue its shared-cost model for data centers, as it does for manufacturing tools. “We’re doing something similar on the data center side,” Maestri said. “We have our own data center and then we utilize third-party computing power. This is a model that has worked for us in the past and we plan to continue doing the same in the future.”
According to Reuters, the success of this on-device AI strategy remains to be seen. While some analysts believe that better processing on the device will attract professional users, it may not be a game changer for overall sales.
Apple may not have a massive artificial intelligence bill
According to Reuters, while Apple’s Huge Tech competitors such as Google and Microsoft are pouring money into building data centers to support their AI services, Apple is taking a different approach. Apple spent a much smaller $10 billion on capital expenditures in 2023 compared to its rivals’ $12 billion to $40 billion range. The focus on on-device processing reflects Apple’s long-standing strategy of working with suppliers to manage production costs, Reuters says.
Apple is expected to showcase modern AI features at an upcoming software conference and integrate AI-enabled chips into its products, but investors shouldn’t expect significant changes to its capital spending practices, according to a Reuters report. Apple CFO Luca Maestri said the company will likely continue its shared-cost model for data centers, as it does for manufacturing tools. “We’re doing something similar on the data center side,” Maestri said. “We have our own data center and then we utilize third-party computing power. This is a model that has worked for us in the past and we plan to continue doing the same in the future.”
According to Reuters, the success of this on-device AI strategy remains to be seen. While some analysts believe that better processing on the device will attract professional users, it may not be a game changer for overall sales.
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