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Apple Plans Paid Siri AI Upgrades
5 Nov
Summary
- Apple will offer paid upgrades for AI features beyond usage limits.
- Siri AI usage costs are recognized through Services cost of sales.
- Apple sees significant revenue growth potential from AI services.
Apple Inc. intends to offer paid access to increased capacity for its Apple Intelligence features, such as Siri AI, once initial usage limits are implemented. This strategy was revealed by CEO John Ternus during the company's fourth-quarter earnings call, responding to inquiries about monetization opportunities for Apple Intelligence.
While specific usage caps will be placed on features relying on server-side models, customers requiring more extensive access will have the option to purchase upgrades. This initiative is part of Apple's broader strategy to expand its cloud services, which recently achieved an all-time revenue high.
The financial implications of enhanced Siri AI are being closely monitored, with costs associated with server-side queries factored into Services cost of sales. Conversely, on-device processing for AI features is noted to have minimal cost.
Apple anticipates substantial revenue growth from AI across various avenues, including third-party integrations and first-party offerings like the proposed expanded access to server-side Siri AI and other Apple Intelligence capabilities. Currently, Siri handles over 2.5 billion requests daily.
