Apple's AI dilemma began with the chip budget dispute in 2023

Apple's AI Dilemma Started with the Chip Budget Dispute in 2023

Apple's current predicament regarding Apple Intelligence and Siri began in early 2023. At that time, John Giannandrea, the company's AI chief, applied to CEO Tim Cook for approval to purchase more AI chips for development. Cook initially approved doubling the team's chip budget, but Chief Financial Officer Luca Maestri cut the increase to less than half of the originally approved amount and encouraged the team to improve the utilization efficiency of existing chips. Due to the lack of sufficient GPU resources, Apple's AI team had to seek computing resources from suppliers such as Google and Amazon. At that time, approximately 50,000 GPUs used in Apple's data centers had been in service for over five years, far fewer than the hundreds of thousands of artificial intelligence chips being purchased by competitors like Microsoft, Google, and Meta.

—— The New York Times

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