Apple To Increase Spending On AI Development

Apple is set to invest more in artificial intelligence to catch up with rivals. CEO Tim Cook suggested last Thursday that the company may buy additional data centers or even acquire a major player in the AI space. A recent report also revealed that Apple is developing a ChatGPT rival and an “answers engine.”

According to Reuters, during a conference call last week, Cook said that Apple is committed to advancing AI technology and is open to acquiring large companies to support this effort.

“We’re very open to M&A that accelerates our roadmap,” explained Cook to investors. “We are not stuck on a certain size company, although the ones that we have acquired thus far this year are small in nature.”

Compared to other tech giants,  Apple has lagged behind in taking bold steps in the AI race. Google recently announced a $25 billion investment in data centers and AI infrastructure. Meta acquired Scale AI for more than $10 billion, and OpenAI partnered with Aker and Nscale last week to build the largest data center in Europe.

In a recent Bloomberg report, Apple expert Mark Gurman revealed that after the earnings call, Cook gathered employees and emphasized that the company must compete in the AI revolution, and that they will make the investments necessary to succeed. Anonymous sources said that the CEO stressed the need and the urgency of standing out in the increasingly competitive AI market.

Gurman also reported that Apple is developing a ChatGPT rival, as the company falls behind in chatbot innovation. Despite recent updates, Siri has failed to keep pace with advancements from competitors.

To address this, Apple has reportedly formed a new team called Answers, Knowledge, and Information (AKI) to develop an internal “answers engine.” While still in its early stages, the initiative is already recruiting talent with expertise in search algorithms and engine development.