Apple bullish on emerging technologies, to test its AI services through Foxconn manufactured servers
US-based tech company, Apple is speculated to test its growing development of generative AI services through Foxconn made servers.
Highlights
- Foxconn is Apple's top server supplier for its data centers
- Technology manufacturer company, Foxconn will get Apple servers manufactured in Vietnam
- The rumoured contract with Apple would be another high-profile order for Foxconn's Shanghai-listed subsidiary, FII
Although Apple is rumored to lag behind its competitors in terms of generative AI, it now appears that the iPhone manufacturer is preparing to test its AI services on Foxconn-made servers.
According to a report from Taiwan's Economic Daily News via South China Morning Post, Foxconn will get Apple servers manufactured in Vietnam for the training and implementation of its AI services. With this move, Apple is taking another attempt to diversify its production away from China.
Foxconn expand its services
Foxconn is Apple's top server supplier for its data centers as well as its top supplier of iPhones. Moreover, this Taiwan-based company formerly known as Hon Hai Precision Industry, controlled around 43 percent of the world server market.
As of now, neither Apple nor Foxconn have commented on the current deal. However, it is believed that this division of Foxconn already supplies servers to OpenAI’s ChatGPT, as well as Nvidia and Amazon Web Services.
In related news, Bloomberg’s Mark Gurman recently said that Apple is currently creating its own system, known as ‘Apple GPT.’ He thinks that Apple, however, lacks a clear strategy and has not yet finalised its intentions.
FII shares may increase from tie up
The rumoured contract with Apple would be another high-profile order for Foxconn's Shanghai-listed subsidiary, FII, whose shares have been volatile in price due to rumors that an increase in AI investments will increase demand for its products, particularly servers.
According to reports, FII has a supply agreement with Apple for AI servers, which would seem to support Foxconn Chairman and CEO, Liu Young-way's confidence over the market for AI servers during the company's first-quarter results call.
Tech giants bets big on AI investments
During Apple’s quarterly earnings call last week, chief executive Tim Cook confirmed that the company has for many years been researching various AI technologies, including generative AI. He did not elaborate.
Other companies are already making notable advancements in the field of AI large language models (LLMs), while Apple is working on its AI innovations. Notably, Meta just revealed their Llama 2 LLM, which will be sold through the Azure ecosystem of Microsoft. Recently, Google debuted PaLM2, its own LLM, which powers the Google Bard chatbot.
