Apple Intelligence Expenditure Has Increased As Company Races To Bring Generative AI Features Later This Year To Compatible Devices

Omar Sohail
Apple Intelligence expenses have increased so generative AI features can successfully launch later this year

Scheduled to arrive in late 2024 when iOS 18.1 officially rolls out to compatible devices, Apple Intelligence is expected to bring a wave of new generative AI features designed to elevate the user experience. During the technology giant’s Q3 2024 earnings, CEO Tim Cook revealed that the company has been allocating additional monetary resources to ensure the artificial intelligence platform arrives on time.

Chief Executive cannot say for sure what sort of positive impact Apple Intelligence will have on sales, particularly the upcoming iPhone 16 lineup

Speaking with CNBC, Cook talked about Apple’s efforts shifting into overdrive mode as the firm proceeds to introduce a wide range of generative AI features later this year. Those who have access to iOS 18.1, iPadOS 18.1, And macOS Sequoia Beta updates can try out those features for themselves, and based on the initial results, they are impressed with what Apple Intelligence is capable of. Cook also revealed that the company is pouring more money into ensuring that development and launch are done on time.

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“What we’ve done is we’ve redeployed a lot of people on to AI that were working on other things. From a data center point of view, as you know, we have a hybrid approach. So we both have our own and we partner with people. And so that capex would be in the partners’ financials, and we would be paying expense. Certainly embedded in our results this quarter is an increase year over year in the amount we’re spending for AI and Apple intelligence.”

Cook did not provide an exact figure on the level of investment injected in Apple Intelligence, but it will not be surprising to hear the figure reach several billions. The executive also did not give an estimate on the kind of positive impact artificial intelligence will bring towards sales, and if the iPhone 16 launch will benefit from providing ‘out of the box’ generative AI features to customers.

It was revealed that the company did not train its AI models using NVIDIA’s GPUs, but employed Google’s Tensor Processing Units instead. Whether or not this will change the company’s course for how Apple Intelligence is developed, we will find out in the future, so stay tuned.

Omar Sohail Photo

About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.

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