Apple to Break AI Silence at Developers Conference

Apple chief executive Tim Cook has called generative AI a 'key opportunity' across the iPhone maker's line of products. Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA/AFP/File
Apple chief executive Tim Cook has called generative AI a 'key opportunity' across the iPhone maker's line of products. Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA/AFP/File
TT

Apple to Break AI Silence at Developers Conference

Apple chief executive Tim Cook has called generative AI a 'key opportunity' across the iPhone maker's line of products. Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA/AFP/File
Apple chief executive Tim Cook has called generative AI a 'key opportunity' across the iPhone maker's line of products. Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA/AFP/File

Apple on Monday will attempt to persuade doubters on its AI strategy after rivals raced ahead in adopting artificial intelligence.
AI and perhaps even a partnership with ChatGPT-maker OpenAI will likely be a driving theme at the kickoff of Apple's WWDC developers' conference in Silicon Valley, according to analysts.
The conference is Apple's annual rendezvous for developers who create apps for iPads, Macs and iPhones -- and CEO Tim Cook will work hard to convince his audience that the company is a major AI player, said AFP.
While Apple has been quietly including AI features in its hardware for years, it has yet to solidify its overall strategy or embrace ChatGPT-style generative AI that took the world by storm in late 2022.
Rivals Microsoft and Google have meanwhile rolled out products in rapid-fire succession, propelling Microsoft and the AI chipmaker Nvidia to surpass Apple as the world's biggest companies when measured by stock price.
Apple's share price has been on a roller coaster ride since the spark of the AI frenzy, but believers see Monday's announcements as the start of a new chapter for the iPhone maker.
While its "silence has been deafening, that will all change on June 10, when Apple crosses the AI Rubicon," predicted Dipanjan Chatterjee, an analyst at research firm Forrester.
At the heart of the announcements will almost certainly be an update to Apple's iPhone operating system, iOS 18, which is expected to see AI given a central role.
Silicon Valley is convinced that generative AI will profoundly change how users interact with smartphones and computers, but the technology is still in its early stages and the benefits not entirely clear for now.
Also heavily rumored is a "flagship" OpenAI partnership that could involve an exclusive chatbot for iPhone owners and supercharge the much-derided Siri.
All these announcements will set the stage for an expected iPhone 16 release later in the year and open the door to "a renaissance of growth" for the company, said Wedbush Securities senior analyst Daniel Ives.
Since Apple makes most of its money from selling iPhones, the AI will likely focus on its devices and services working more seamlessly together, said Creative Strategies analyst Carolina Milanesi.
"At the end of the day for Apple, it is about getting people to upgrade their iPhone," Milanesi said. "We will see if Apple gives them a compelling reason to do that."
'Litmus test'
Announcements at WWDC will be a "litmus test" for Apple's ability to integrate ChatGPT-like generative AI into all its devices and services, said Emarketer senior analyst Gadjo Sevilla.
"Any misstep by Apple at this juncture could see it lose its place as a technology leader, especially as it is now sandwiched between two AI giants with actual products and release roadmaps that go well into the next two years."
CEO Cook already foreshadowed his commitment to AI by putting more powerful and AI-ready chips on iPad and MacBook releases earlier this year.
But the big challenge for Apple is how to infuse the technology into its products without weakening its heavily promoted user privacy and security, according to analysts.
ChatGPT-style AI voraciously feeds off data and Apple will be at pains to fight the AI race while living up to its traditional position on safeguarding data privacy.
"Being too controlling of an AI ecosystem could cause Apple to lose ground or fall behind while other companies are moving fast and breaking things," Sevilla said.



Nations Building Their Own AI Models Add to Nvidia's Growing Chip Demand

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
TT

Nations Building Their Own AI Models Add to Nvidia's Growing Chip Demand

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Nations building artificial intelligence models in their own languages are turning to Nvidia's chips, adding to already booming demand as generative AI takes center stage for businesses and governments, a senior executive said on Wednesday.
Nvidia's third-quarter forecast for rising sales of its chips that power AI technology such as OpenAI's ChatGPT failed to meet investors' towering expectations. But the company described new customers coming from around the world, including governments that are now seeking their own AI models and the hardware to support them, Reuters said.
Countries adopting their own AI applications and models will contribute about low double-digit billions to Nvidia's revenue in the financial year ending in January 2025, Chief Financial Officer Colette Kress said on a call with analysts after Nvidia's earnings report.
That's up from an earlier forecast of such sales contributing high single-digit billions to total revenue. Nvidia forecast about $32.5 billion in total revenue in the third quarter ending in October.
"Countries around the world (desire) to have their own generative AI that would be able to incorporate their own language, incorporate their own culture, incorporate their own data in that country," Kress said, describing AI expertise and infrastructure as "national imperatives."
She offered the example of Japan's National Institute of Advanced Industrial Science and Technology, which is building an AI supercomputer featuring thousands of Nvidia H200 graphics processors.
Governments are also turning to AI as a measure to strengthen national security.
"AI models are trained on data and for political entities -particularly nations - their data are secret and their models need to be customized to their unique political, economic, cultural, and scientific needs," said IDC computing semiconductors analyst Shane Rau.
"Therefore, they need to have their own AI models and a custom underlying arrangement of hardware and software."
Washington tightened its controls on exports of cutting-edge chips to China in 2023 as it sought to prevent breakthroughs in AI that would aid China's military, hampering Nvidia's sales in the region.
Businesses have been working to tap into government pushes to build AI platforms in regional languages.
IBM said in May that Saudi Arabia's Data and Artificial Intelligence Authority would train its "ALLaM" Arabic language model using the company's AI platform Watsonx.
Nations that want to create their own AI models can drive growth opportunities for Nvidia's GPUs, on top of the significant investments in the company's hardware from large cloud providers like Microsoft, said Bob O'Donnell, chief analyst at TECHnalysis Research.