Apple, caught by surprise in generative AI boom, to spend $1 billion per year to catch up: Report

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Apple CEO Tim Cook takes a dip in the crowd after the presentation of the new iPhone 15. 
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Apple is on track to spend $1 billion per year on developing its generative artificial intelligence products, Bloomberg reported.

The spending comes as the company plays catch-up to some competitors who have already debuted new AI products and features, such as Google, Microsoft and Amazon, according to the report.

Apple uses AI in its products but hasn’t launched a generative AI product along the lines of OpenAI’s ChatGPT or Google Bard, for example. Instead, Apple’s AI is used for things like improving photos and autocorrecting text.

So far, Apple has built its own large language model framework, Ajax, as well as a rumored chatbot, known internally as Apple GPT, Bloomberg said. Neither has been incorporated into its products yet.

The company is reportedly looking to integrate AI into Siri, Messages and Apple Music. For the latter, Apple would use AI to create auto-generated playlists like Spotify does via its partnership with OpenAI. The company is also exploring using AI in Xcode to assist app developers, according to the report.

The Apple executives leading the AI initiatives are John Giannandrea, SVP of machine learning and AI strategy, Craig Federighi, SVP of software engineering, and Eddy Cue, head of services, Bloomberg reported.

An Apple spokesperson wasn’t immediately available for comment.

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