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Apple to Spend $1B Annually to Develop Generative AI Models
Apple Inc (NASDAQ: AAPL) is gearing up for a significant leap into the world of generative artificial intelligence (AI), with plans to invest around $1 billion annually to develop its own AI solutions, Bloomberg reported Monday, citing people familiar with the matter.
The move comes as a strategic response to the escalating advancements in AI technology by other tech giants such as Google LLC (NASDAQ: GOOGL), Microsoft Corp (NASDAQ: MSFT), and Amazon.com Inc (NASDAQ: AMZN).
Apple to Join the AI Race with Planned Innovations
While Apple has used AI to enhance photo quality and refine text auto-correction on some of its products, the company has yet to release a generative AI tool akin to OpenAI’s ChatGPT or Google Bard.
However, the tech giant plans to join the race by developing its extensive language AI model framework called Ajax. Additionally, the tech giant is rumored to be experimenting with an in-house chatbot named AppleGPT. However, both innovations are yet to be integrated into the company’s product offerings.
According to the report, the $1 billion annual investment will focus on incorporating AI capabilities into various facets of Apple’s ecosystem. Specifically, the company is exploring the integration of AI into some of its products, including Siri, Messages, and Apple Music, with potential plans to introduce AI-generated playlists, similar to Spotify’s approach, through its collaboration with OpenAI.
Additionally, Apple is considering leveraging AI within Xcode to assist app developers in creating their applications seamlessly. The move, if implemented, could significantly streamline the app development process for iOS developers.
The company is also testing the creation of generative AI solutions for internal customer service apps within the AppleCare family.
Apple’s AI Development Team
Bloomberg said in the report that industry luminaries, including John Giannandrea, the Senior Vice President of Machine Learning and AI Strategy, Craig Federighi, the Senior Vice President of Software Engineering, and Eddy Cue, the Head of Services, are spearheading the AI endeavors at Apple.
The report revealed that Cue’s team is working to introduce AI features to as many Apple products as possible, including the intended auto-generated playlist for Apple Music.
The team is also exploring ways to help use generative AI to assist users with writing in-app-like pages and learning how to auto-create slide decks for the keynote.
On the other hand, the software engineering division led by Federighi at Apple is working to implement AI in the company’s next iteration of iOS. According to Bloomberg, there is a directive to enrich it with functionalities running on the company’s large language model, which uses a flood of data to hone AI capabilities.
