In its most recent 10-Q financial report submitted to the U.S. Securities and Exchange Commission (SEC), tech behemoth Apple has cautioned that it might encounter a scarcity of computing resources essential for artificial intelligence (AI) and machine learning. While the latest earnings report underscored that supply chain constraints could potentially hinder revenue growth in the current quarter, regulatory disclosures indicate that Apple harbors more profound worries regarding capacity limitations in its AI and machine learning infrastructure. Apple is aggressively constructing AI cloud computing centers and striving to integrate its proprietary chips to forge a 'hybrid cloud computing center.' Nevertheless, its investment in AI computing infrastructure significantly trails that of its rivals, and its in-house AI chips are still in their nascent stages, rendering it challenging to facilitate extensive model training in the near future. Moreover, the global uptick in memory chip prices, spurred by soaring AI demand, has further intensified Apple's cost burdens. The escalation in memory costs has persisted over several quarters, with procurement expenses projected to keep climbing in the upcoming quarter, thereby maintaining pressure on Apple's gross profit margins.
