Apple Signals Major AI Push: Increased Investments and Openness to Acquisitions

Apple plans to 'significantly' grow AI investments and is open to M&A | TechCrunch

Apple on Thursday signaled that it's getting more serious about its plans to catch up in the AI race. "We see AI as one of the most profound technologies of our lifetime. We are embedding it across our devices and platforms and across the company. We are also significantly growing our investments," CEO Tim Cook said on the Q3 2025 earnings call with investors. "Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that's at the heart of our AI strategy," he added. Ahead of its call, the company also shared in an interview with CNBC that it's planning to "significantly grow" its AI investments and is open to M&A to accelerate its AI plans. The company also noted that it has already acquired seven companies this year. None was "huge" in terms of dollar amount, Cook said. Apple has been criticized for having been caught off guard by the AI era; it has announced a number of AI features that it has, so far, failed to ship. The company was even accused of showing off an improved AI-powered version of Siri that wasn't close to being ready to launch. But Apple has defended itself by saying that it doesn't need to rush -- that launching the wrong features or the wrong products just to be first would be a mistake. That's especially true if those products don't work as promised. So far, Apple says it has launched more than 20 Apple Intelligence features, including visual intelligence, cleanup, and writing tools. Later this year, Apple plans to launch AI features like live translation and an AI-powered workout buddy, but the more personalized Siri's improvements have been delayed to 2026. Apple delivered better-than-expected iPhone sales and record revenue in Q3, which saw its stock pop in after-hours trading.

Apple plans to 'significantly' grow AI investments, Cook says | TechCrunch

Apple on Thursday signaled that it's getting more serious about its plans to catch up in the AI race. "We see AI as one of the most profound technologies of our lifetime. We are embedding it across our devices and platforms and across the company. We are also significantly growing our investments," CEO Tim Cook said on the Q3 2025 earnings call with investors. "Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that's at the heart of our AI strategy," he added. Cook expanded on those comments on the call, noting that Apple was "reallocating a fair number of people" to focus on AI. "We have a great, great team and we're putting all of our energy behind it," he added. AI investments are also driving increased CapEx spending, which was up year-to-date, the company said. However, Apple pointed out that it still employed a hybrid model where it relies on third parties to make capital investments, which is why it won't grow exponentially. Ahead of its call, the company shared in an interview with CNBC that it's open to M&A to accelerate its AI plans. The company told the outlet that it has already acquired seven companies this year. None was "huge" in terms of dollar amount, Cook said. Apple has been criticized for having been caught off guard by the AI era; it has announced a number of AI features that it has, so far, failed to ship. The company was even accused of showing off an improved AI-powered version of Siri that wasn't close to being ready to launch. But Apple has defended itself by saying that it doesn't need to rush -- that launching the wrong features or the wrong products just to be first would be a mistake. That's especially true if those products don't work as promised. So far, Apple says it has launched more than 20 Apple Intelligence features, including visual intelligence, cleanup, and writing tools. Later this year, Apple plans to launch AI features like live translation and an AI-powered workout buddy, but the more personalized Siri's improvements have been delayed to 2026. On the call with investors, Cook said the company was "making good progress" on the Siri update. He also shared his thoughts on how AI may impact the iPhone business if new hardware were to emerge. For instance, Meta CEO Mark Zuckerberg earlier this week suggested that AI glasses would be the form factor for interacting with the new technology, and those without them would be left behind. Cook, naturally, disagreed. "It's difficult to see a world where iPhone's not living in it," he said. "That doesn't mean that we are not thinking about other things, as well, but I think that the [AI] devices are likely to be complementary devices, not substitutions." The exec declined to answer a question about what AI technologies it believed would ultimately believed would be commoditized, saying that would give away part of its strategy. Apple delivered better-than-expected iPhone sales and record revenue in Q3, which saw its stock pop in after-hours trading.

Apple Is Open to Buying Companies to Get Ahead in the AI Race

Apple's CEO Tim Cook has used the company's latest earnings call to tell customers and investors it is "significantly" increasing its investment in AI technologies. Cook said, "We are embedding it across our devices and platforms and across the company. We are also significantly growing our investments." He also confirmed the brand is reallocating a "fair number of" employees to work on Apple Intelligence features. This came as part of a celebratory earnings call for the company where the brand beat expectations for the third fiscal quarter. It saw results up 10% from the same period a year ago, bringing in a revenue of $94 billion between April and June 2025. Apple has been criticized for being slow to act on artificial intelligence features with a false start to an AI-powered version of Siri highlighting its struggles. The brand has also reportedly lost numerous AI engineers is recent months with four experts moving to rival Meta. Ahead of the earnings call, Apple told CNBC it was open to acquiring companies that may help it get ahead in the AI race. Apple says it has made seven acquisitions this year, but it confirmed none of them were "huge in terms of dollar amount." Cook said, "We're open to M&A that accelerates our roadmap." He didn't share any of the targets in Apple's sights, but a previous report in June, from Bloomberg, said Apple was reportedly considering a purchase of AI search tool Perplexity. Another report in July said the brand was considering partnering with Anthropic or OpenAI to help power some of Siri's features. None of these reports have been confirmed by Apple. This new earnings call is the first time Apple has publicly noted it is open to buying new companies to help its work in the AI space. In the meantime, the brand is working hard on new Siri features, which Apple execs have said won't be launching until 2026. The earnings call also saw Cook note the impact of US tariffs on its business. He shared that Apple has spent $800 million on tariffs during the last quarter, and he believes with no further changes to charges, Apple will see $1.1 billion added between July and September. That period will likely involve the launch of a new iPhone 17 series, and the brand may introduce other gadgets alongside it. Apple also confirmed on the earnings call that the iOS 26, macOS 26, and iPadOS 26 developer betas were the most popular trials it has ever run. Apple is also celebrating a major milestone of becoming the second company ever to sell over three billion phones. Analysts believe Samsung hit that target between 2014 and 2024, but it has likely sold far more as the brand also made handsets before 2014.

CEO Tim Cook says Apple ready to open its wallet to catch up in AI

SAN FRANCISCO, July 31 (Reuters) - Apple (AAPL.O), opens new tab CEO Tim Cook signaled on Thursday the iPhone maker was ready to spend more to catch up to rivals in artificial intelligence by building more data centers or buying a larger player in the segment, a departure from a long practice of fiscal frugality. Apple has struggled to keep pace with rivals such as Microsoft (MSFT.O), opens new tab and Alphabet's Google (GOOGL.O), opens new tab, both of which have attracted hundreds of millions of users to their AI-powered chatbots and assistants. That growth has come at a steep cost, however, with Google planning to spend $85 billion over the next year and Microsoft on track to spend more than $100 billion, mostly on data centers. Apple, in contrast, has leaned on outside data center providers to handle some of its cloud computing work, and despite a high-profile partnership with ChatGPT creator OpenAI for certain iPhone features, has tried to grow much of its AI technology in-house, including improvements to its Siri virtual assistant. The results have been rocky, with the company delaying its Siri improvements until next year. During a conference call after Apple's fiscal third-quarter results, analysts noted that Apple has historically not done large deals and asked whether it might take a different approach to pursue its AI ambitions. CEO Cook responded that the company had already acquired seven smaller companies this year and is open to buying larger ones. "We're very open to M&A that accelerates our roadmap. We are not stuck on a certain size company, although the ones that we have acquired thus far this year are small in nature," Cook said. "We basically ask ourselves whether a company can help us accelerate a roadmap, and if they do, then we're interested." Apple has tended to buy smaller firms with highly specialized technical teams to build out specific products. Its largest deal ever was its purchase of Beats Electronics for $3 billion in 2014, followed by a $1 billion deal to buy a modem chip business from Intel. But now Apple is at a unique crossroads for its business. The tens of billions of dollars per year it receives from Google as payment to be the default search engine on iPhones could be undone by U.S. courts in Google's antitrust trial, while startups like Perplexity are in discussions to try to dislodge Google with an AI-powered browser that would handle many search functions. Apple executives have said in court they are considering reshaping the firm's Safari browser with AI-powered search functions, and Bloomberg News has reported that Apple executives have discussed buying Perplexity, which Reuters has not independently confirmed. Apple also said on Thursday it plans to spend more on data centers, an area where it typically spends only a few billion dollars per year. Apple is currently using its own chip designs to handle AI requests with privacy controls that are compatible with the privacy features on its devices. Kevan Parekh, Apple's chief financial officer, did not give specific spending targets but said outlays would rise. "It's not going to be exponential growth, but it is going to grow substantially," Parekh said during the conference call. "A lot of that's a function of the investments we're making in AI." Reporting by Stephen Nellis in San Francisco; Editing by Sayantani Ghosh and Tom Hogue Our Standards: The Thomson Reuters Trust Principles., opens new tab

Facing questions on AI strategy, Tim Cook says Apple is 'very open' to acquisitions

Tim Cook arrives for the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025. Apple's AI strategy and investment was on the mind of analysts on an earnings call after the company reported third-quarter earnings that showed overall revenue grew by 10% year over year. While Apple was never going to announce major acquisitions or initiatives on an earnings call, CEO Tim Cook's remarks on Thursday confirm that the company is going to invest more heavily in the technology. Cook said Apple is going to "significantly" grow the company's investments in AI. He added that Apple was always looking to buy companies of any size that could help it develop its AI offerings. "We're very open to M&A that accelerates our roadmap," Cook said. "We are are not stuck on a certain size company, although the ones that we have acquired thus far this year are small in nature." Cook said that Apple had acquired "around" seven companies so far this year, although not all of them were focused on AI. While Cook has said in the past that Apple is always evaluating potential acquisitions of all sizes, its largest purchase of all time was Beats Electronics in 2014 for $3 billion. He made the remarks Thursday as Apple has faced growing pressure from Wall Street to catch up to its Silicon Valley peers, all of whom have dedicated tens of billions of dollars toward the infrastructure necessary to power AI. Apple has never been the biggest spender on capital expenditures among big tech companies. It only reported $3.46 billion in capital expenditures in the June quarter, up from $2.15 billion in the year ago period. Its expenses this past quarter are the highest they have been since the quarter ending December 2022. If Apple spent as much as it did this quarter for a full year, that would be about $14 billion annually. That hardly compares to Google projecting $85 billion in capital expenditures for its fiscal 2025 last week, Meta's estimate of as much as $72 billion in annual capital expenditure spending, and Microsoft's $30 billion capital expenditures guide for the current quarter.

Apple is 'open to' acquisitions to boost its AI roadmap

Apple leadership discussed results and updates today in its third-quarter conference call, including some statements about its AI endeavors. As reported by CNBC, CEO Tim Cook said that the company is "significantly growing out investments" in artificial intelligence, which shouldn't be much of a surprise for any players in the tech space. However, Cook did acknowledge that an acquisition to boost its work in AI wasn't out of the question. "We're open to M&A that accelerates our roadmap," he said. Cook said that Apple is "not stuck on a certain size company" as a possible target for an AI-related purchase. He noted that Apple has acquired "about" seven businesses so far this year across multiple disciplines but that none were "huge in terms of dollar amount." The company also has been pretty quiet on its to overhaul the Siri voice assistant with more AI features. The news is still sparse on that subject; according to Reuters, Cook simply stated that the team is "making good progress on a personalized Siri." Despite hopes that Siri improvements would be unveiled at WWDC 2025, the latest projections are that the AI-powered update to that service might not be ready until . Apple did announce a few at WWDC, but the general consensus is that the company's AI efforts have been flagging behind other big tech businesses. That has led to speculation that it may look externally to improve its standing in the race to build the best AI features. Most recently, some execs within Apple have allegedly been as a potential acquisition.

Apple is facing pressure from Wall Street to figure out its AI strategy

Apple CEO Tim Cook and Senior Vice President of Software Engineering Craig Federighi speak during Apple's annual World Wide Developers Conference at the company's headquarters in Cupertino, California, U.S., June 9, 2025. While its megacap tech peers are bragging about building island-sized data centers filled with Nvidia chips to power artificial intelligence devices of the future, Apple remains largely on the sidelines. Wall Street is getting concerned. The iPhone maker is the second-worst performer this year among the so-called Magnificent Seven, with its stock down over 15% as of Tuesday's close. Tesla, down 20%, is the only other member of the group that's lost value in 2025. Apple has disappointed its users and investors by declining to share more about its AI strategy, despite delaying the next generation of Siri until at least next year. Making matters worse, longtime Apple design chief Jony Ive in May sold his nascent startup IO for $6.5 billion to OpenAI. In the announcement, OpenAI CEO Sam Altman said his company is currently working on new hardware devices. OpenAI's aggressive move underscores Apple's unclear role in the future of AI and its lack of a clear strategy when it comes to competing. Analysts worry that Apple's position could start to hurt iPhone sales, which are still happening in historic volumes. "The incomplete AI strategy is still the biggest overhang, but we think Apple still has approximately 1.5 years to effect a compelling solution," TD Cowen analyst Krish Sankar wrote in a note on Monday. He recommends buying the shares. Don't expect Apple to dwell on its AI problem when it reports fiscal third-quarter earnings on Thursday. The company will likely be too busy talking about the $40 billion in iPhones it's expected to sell, per a FactSet estimate, and its profitable services business. Revenue in the services division is expected to show growth of about 11% to $26.8 billion, more than double the growth rate for the whole company.

Apple 'very open' to AI acquisitions to speed up its roadmap - 9to5Mac

Whenever there's talk of Apple making a big, splashy acquisition to help catch up in AI, someone inevitably points out that "Apple doesn't acquire big companies like that". Today, Apple CEO Tim Cook offered his view: company size doesn't matter. During today's Q3 2025 earnings call, Citi analyst Atif Malik asked whether Apple needed to accelerate its AI roadmap, despite historically not resorting to big acquisitions. Cook noted that Apple has acquired seven companies this year, although not all of them were AI companies. Then, he added: "We're very open to M&A that accelerates our roadmap. We're not stuck on a certain size company. (...) we basically ask ourselves whether a company can help us accelerate a roadmap. If they do, then we are interested. But we don't have anything to share specifically today." Cook's answer comes about a month after Bloomberg reported that Apple had held internal talks about acquiring AI search startup Perplexity, which reportedly just closed a $1 billion funding round, pegging its value at more than $18 billion, and pushing any potential sale price even higher. An acquisition would not just make it Apple's biggest to date, well beyond the $3 billion Beats deal, it could arguably eclipse the combined value of every other acquisition Apple has ever made. At the same time, Morgan Stanley recently published a report that classified as "misguided" the idea that Apple needed to acquire an AI search startup. Be it as it may, Cook's remarks today offered both a different perspective, and a roadmap of companies hoping to break with Apple's precedent: for this particular case, if the technology is right, Apple may be willing to pay a price as massive as its own shortcomings in the AI game.

Tim Cook: Apple is 'significantly growing' AI spend, M&A could accelerate roadmap

Today Apple reported its quarterly earnings, far exceeding Wall Street expectations with a huge 10% YoY revenue increase. CEO Tim Cook also signaled strong AI ambitions for the company in quotes made to CNBC. Apple's AI investments are growing, but much more could be ahead Kif Leswing writes at CNBC: "We are significantly growing our investments," Cook said about AI. "We're embedding it across our devices, across our platforms and across the company." Cook said that Apple had acquired "around" seven companies so far this year although none had been "huge in terms of dollar amount." "We're open to M&A that accelerates our roadmap," Cook said. Cook also said that Apple views AI as "one of the most profound technologies of our lifetime." The quotes come at a critical time for Apple, with Wall Street well aware of various reports that have made Apple's AI efforts seem troubled. Just this week, Bloomberg reported on another high-profile departure from Apple for Meta's "superintelligence" division. This is the fourth such loss from Apple's foundation models team very recently. Apple Intelligence first launched last year, and is getting a variety of new features in iOS 26. But by and large, fueled especially by Siri feature delays, consensus in the tech world is that Apple has a lot of catching up to do to match the AI output that companies like OpenAI, Google, and others have achieved.

Apple 'Open' to Acquisition That Accelerates AI Roadmap

Apple is "open" to an acquisition that would accelerate its AI roadmap, Apple CEO Tim Cook told CNBC today. Cook said that Apple sees AI as one of the "most profound technologies of our lifetime," and that the company is "significantly growing" its AI investments. "We're embedding it across our devices, across our platforms and across the company," Cook said. Apple has already purchased seven companies in 2025. "We're open to M&A that accelerates our roadmap," Cook added. Apple has been losing key members of its AI team to Meta in recent weeks, and the company is already far behind competitors in AI development. There have been rumors that Apple is considering working with Anthropic or OpenAI to develop an LLM version of Siri rather than using its own AI technology, but Apple hasn't moved forward with a partnership as of yet. Many of the high profile AI companies would not be feasible for Apple to purchase, but the company has considered purchasing Perplexity AI. Perplexity is valued at $18 billion, so if Apple did acquire the company, it would mark Apple's largest acquisition to date.

Apple says it's ready to spend big on AI -- that Perplexity acquisition rumor is a good place to start

Apple exceeded Wall Street expectations in its latest earnings call, but perhaps the Achilles' heel for the tech giant so far has been its approach to AI. Apple has been seen by many -- including Tom's Guide -- as trailing the likes of Google, OpenAI and even Microsoft when it comes to implementing useful AI solutions into its products. Well, that could be about to change. According to CNBC, Tim Cook told investors the company plans to "significantly grow our investments" when it comes to AI. Considering Apple posted a total revenue of $94 billion last quarter, that remark carries about the same weight as a silverback gorilla casually eyeing up a few neighboring patches of rainforest. "We're open to M&A [mergers and acquisitions] that accelerate our roadmap," Cook said, noting that Apple had acquired around seven companies so far this year. He qualified that by saying none had been "huge in terms of dollar amount." The bullish comments come at a time when other companies are spending huge amounts on AI acquisitions. For instance, Meta has paid $14.3 billion -- its largest ever investment -- to acquire a 49% stake in Scale AI, a San Francisco data annotation company. Meanwhile, Microsoft has become only the second company after Nvidia hitting hit a $4 trillion valuation. Largely thanks to Azure and AI. Forrester's VP principal analyst Dipanjan Chatterjee said that Apple getting serious on AI spend is an admission that it's fallen behind the tech pack. And he suggests that Perplexity could be in the company's sights. This is something we've heard before, specifically from a Bloomberg report claiming Apple's head of M&A, Adrian Perica, is interested in the AI company. "Apple's AI urgency is palpable, and there is a quiet admission of its sluggishness in the acknowledgement that it may have to lean heavily on acquisition to compress timelines," Chatterjee said. "Rumors swirl about a Perplexity deal, and if that were to happen, it may greatly accelerate the elusive promise of a more effective Siri." Acquiring or partnering with Perplexity would make sense for Apple as it could integrate Perplexity's tech into making Siri smarter now that Apple's planned AI revamp for its assistant has been pushed into 2026. If the deal came, it'd be Apple's biggest ever acquisition. Perplexity is valued at around $14 billion, which towers above Apple's biggest deal to date: buying Beats for $3 billion back in 2014.

Dan Ives slams Apple's tech showcase as 'an episode out of 'Back to the Future'' and turns up the heat on Tim Cook over 'elephant in the room'

While fellow tech titans are racing to put AI front and center, Apple's WWDC presentation was notable for its near silence on the subject. "Barely no mention of AI," Ives remarked in his latest report, calling it "the elephant in the room." He noted this was a stark contrast to the fever pitch seen at rival developer events. Analysts, investors, and developers tuned in with expectations of a grand reveal that would clarify Apple's ambitions for the "AI Revolution." Instead, they watched as the company leaned on traditional strengths -- hardware updates and a strong services story -- leaving the future of Siri and Apple's broader AI roadmap conspicuously vague. This omission has become a growing concern for analysts like Ives, who believe Apple is at a crossroads. "It's becoming crystal clear that any innovation around AI at Apple is not coming from inside the walls of Apple Park," he wrote, referencing the company's famed Cupertino headquarters. While Apple has historically prided itself on building transformative technology in-house, Ives argues those days may be over. "The time has come" for a big acquisition, he wrote, singling out Perplexity as a "no brainer" acquisition target -- even if it costs upwards of $40 billion. According to Ives, such a move could instantly supercharge Apple's lagging AI platform and help reposition Siri as the "next AI gateway for consumers." To date, Apple's biggest acquisition remains Beats, a $3 billion deal in 2014 -- an order of magnitude smaller than the types of deals transforming the AI sector today. Apple's traditionally cautious approach to M&A, Ives suggests, may be holding it back at a time when speed is everything. "AI technology on the enterprise and consumer landscape is happening at such a rapid pace Apple will not be able to catch up with an internally built solution," he warned. The stakes, Ives estimates, are high: A successful AI monetization strategy could add as much as $75 per share to Apple's valuation. "We believe [CEO Tim] Cook needs to rip the band-aid off and finally do an M&A deal," he wrote. The muted AI narrative at WWDC comes during a broader period of transition for Apple. While demand for iPhones -- a bellwether for the company -- remains globally robust, with particular improvement in China after a year of tough competition, the company faces mounting headwinds. Trade tensions, evolving supply chain risks, and increasing pressure from lower-priced rivals in Asia have stressed Apple's core markets. For now, analysts are keeping faith with Apple's near-term performance. Wedbush maintains its "Outperform" rating, with a 12-month price target of $270 per share, citing expected growth driven by the upcoming iPhone 17 and continued strength in services. The stock was trading at $211.27 at the time of writing. But Ives is steadfast: the next chapter -- centered on AI -- will define Apple's future. To be clear, Cook has had a legendary run after succeeding Steve Jobs in 2011. Over the ensuing 14 years, Cook has led Apple through a period of extraordinary shareholder value creation -- transforming a $300 billion company into a $3.2 trillion titan. Under his stewardship, Apple refined its operational efficiency, reinvigorated its services division, and delivered massive profits through established hits like the iPhone, AirPods, and Apple Watch. But as Fortune's Geoff Colvin reported, "suddenly his weaknesses are on display in the AI era." A chorus of analysts has joined Ives in arguing that Cook's operational excellence and supply-chain mastery may not be enough to win the future, as the AI era upends the tech industry's priorities. The first half of 2025, furthermore, has been bruising. The company's stock is down about 16%, while rivals like Microsoft and Alphabet have soared on aggressive bets in generative AI. Apple's "Apple Intelligence" initiative, which was supposed to position Siri and other features at the forefront of consumer AI, has failed to capture investor or developer enthusiasm. Meanwhile, key AI executives have left: Apple's top AI executive Ruoming Pang recently defected to Meta, just weeks after another top Apple AI scientist, Tom Gunter, resigned. Simultaneously, Chief Operating Officer Jeff Williams -- a long-touted Cook successor -- is set to retire, forcing a broader management overhaul. These departures have intensified debate about Apple's innovation pipeline. Critics argue that under Cook, Apple has not delivered any genuinely transformative new product since the Jobs era, with most recent hits -- like AirPods or the Apple Watch -- refining rather than redefining product categories. The risk, analysts warn, is existential: If smart devices shift into new AI-centric paradigms and Apple fails to respond forcefully, the company's platform risks obsolescence. Research firm LightShed Partners rocked investors and the tech press in July by calling for a regime change. Analysts Walter Piecyk and Joe Galone insisted Apple needs a product-focused CEO, not one centered on logistics. They warned Apple's lack of compelling innovation in AI and the relatively stagnant progression of Siri could irreversibly erode its competitive edge as Google, Microsoft, and OpenAI press forward. Cook's defenders argue Apple has a unique position: its platform lock-in gives it time to execute a measured AI response. And historically the company has rarely been first-mover -- its success derives from perfecting existing technologies, not inventing them. Nevertheless, with AI's foundational impact compared to the internet or electricity, allowing the competition to set the pace could be dangerous. Ives is still backing Cook, with reservations. "Patience is wearing thin among investors and importantly developers," he warned. The coming months, particularly as Apple's product cycle heats up in September and beyond, may prove pivotal -- not just for the company's balance sheet. Ives said Wedbush believes Cook will be Apple CEO for another five years, at least, but there are mounting challenges, from the "tariff iPhone quagmire," with Apple's manufacturing operations in China directly exposed to trade uncertainty, to President Donald Trump's displeasure with India as an alternate supply chain solution, to "missing the AI foundational strategy." He concluded, "this chapter will define Cook's legacy." "It's time for Cook and Cupertino to face the new reality of this quickly morphing AI-driven tech landscape," Ives wrote. "Because if they do not change, it will be a historic strategic black eye for Apple in our view."

Apple AI investments grow as Tim Cook teases more acquisitions - Phandroid

Apple AI investments are ramping up fast. In its latest earnings call, Apple announced a 10% year-over-year revenue increase and made it clear that AI is going to be a big part of its future. Speaking to CNBC, Tim Cook said the company is "significantly growing" its investments and embedding AI across its devices, platforms, and teams. So far this year, Apple has acquired around seven companies. While none were massive deals, Cook hinted that Apple is open to more acquisitions if they help accelerate its roadmap. This lines up with rumors that Apple is considering buying Perplexity, an AI search startup that's been gaining attention lately. Cook called AI "one of the most profound technologies of our lifetime," but Apple still has a long way to go. Just this week, Bloomberg reported that another high-level researcher has left Apple's AI team for Meta. That marks the fourth major defection in a short span, and it raises questions about internal challenges. Apple Intelligence, its main AI initiative, first launched last year and is expected to expand with new features in iOS 26. But Siri's delays have cast a shadow over the rollout, and many in the industry feel Apple's AI still lags behind leaders like OpenAI and Google. Despite that, Apple's strong financials and growing AI focus could mean big things ahead. Whether it's more acquisitions or internal upgrades, one thing's clear: Apple's not sitting still anymore.

Tim Cook Says Apple Is Investing 'Significantly' in AI and Could Buy Another Company

Kara Greenberg is a senior news editor for Investopedia, where she does work coordinating, writing, assigning, and publishing multiple daily and weekly newsletters. Prior to joining Investopedia, Kara was a researcher and editor at The Wire. Earlier in her career, she worked in financial compliance and due diligence at Loomis, Sayles & Company, and The Bank of New York Mellon. Apple wants investors to know it's taking bigger steps to catch up in the AI race. The iPhone maker is "significantly growing" its investments and reallocating employees to focus on AI, CEO Tim Cook told investors on the company's quarterly earnings call Thursday. Shares of Apple (AAPL) climbed over 2% in after-hours trading following the call, after Apple reported better-than-expected earnings with record services revenue. The shares were down about 17% for 2025 through Thursday's close, making it the only Magnificent Seven member in negative territory for the year besides Tesla (TSLA) amid worries about its AI progress. Apple, which has lagged many of its Big Tech peers in AI, faces growing pressure to prove it can keep up after delaying the rollout of highly anticipated features such as an AI-enhanced Siri, disappointing investors. The more personalized, AI-powered version of Apple's Siri is now expected to launch in 2026, Cook said Thursday. Apple previously suggested a more powerful Siri would come this spring. Cook also said Apple would consider buying other companies to raise its AI capabilities -- something Wall Street analysts have suggested could give Apple's AI efforts a bigger boost. "We're very open to M&A that accelerates our roadmap," Cook said, noting Apple has already acquired around seven companies this year, though "not all AI oriented." Earlier this month, Wedbush analyst and longtime Apple bull Dan Ives suggested AI startup Perplexity could be a target. Apple has also reportedly held talks with ChatGPT maker OpenAI and Claude developer Anthropic about relying on their AI models instead of in-house ones.

Apple 'Very Open' to Acquire AI Companies, Increase Funds: Report

Apple reported a 10 percent revenue growth YoY between April and June Apple CEO Tim Cook reportedly highlighted that the company is planning to "significantly" increase its investments in artificial intelligence (AI) technology. The statements were made on Thursday as part of the CEO's remarks alongside Apple's third-quarter earnings report. As per the report, the Cupertino-based tech giant is also open to the merger and acquisition route to catch up in the AI race. These comments indicate that the iPhone maker has not given up building an in-house AI tech stack despite several setbacks. According to a CNBC report, Cook said that Apple has acquired seven companies this year so far, and remains "very open" to further acquisitions that can help the tech giant grow faster. "We're very open to M&A that accelerates our roadmap. We are not stuck on a certain size company, although the ones that we have acquired thus far this year are small in nature," he was quoted as saying. Apart from this, the Apple CEO reportedly also stated that the company was "significantly" growing its investment in AI. Alongside resource allocation, the tech giant is also said to be reallocating its staff to ensure more employees are working on AI features. While the company did not mention how it intends to utilise these resources, Cook reportedly mentioned that some of the capital expenditure this quarter will go towards Private Cloud Compute, the company's private servers for on-cloud AI processing. "Our focus, from an AI point of view, is on putting AI features across the platform that are deeply personal, private and seamlessly integrated[..]The way that we look at AI is that it's one of the most profound technologies of our lifetime. It will affect all devices in a significant way," CNBC quoted Cook as saying. Apple CEO's statements on AI highlight that the company still intends to compete with the likes of Google, OpenAI, and Anthropic. The iPhone maker has already partnered with OpenAI to bring ChatGPT's capabilities to its devices, and is rumoured to structure a similar deal with Anthropic. Separately, according to a report, the tech giant has held internal discussions considering the possibility of acquiring Perplexity. However, no bids have been reported so far.

What Analysts Are Saying About Apple's AI Ambitions After Strong Quarterly Results

Apple (AAPL) CEO Tim Cook made it clear that Apple is growing its AI investments, both in infrastructure and personnel, and multiple analysts raised their price target following the iPhone maker's quarterly results. JPMorgan analysts called out Cook's "aggressive tone on investments to catch up and support Al competitiveness." On Apple's earnings call, Cook said the iPhone maker is ramping up its investments and reallocating employees to focus on AI. The bank maintained an "overweight" rating and raised its price target to $255 from $250, suggesting 22% upside with Apple stock down 2% Friday at about $204. Whether it reaches that target could depend on features like an AI-enhanced Siri, which Cook confirmed is coming in 2026, after extensive delays. Citi raised its target to $240 from $235, noting that growing AI spending, including a potential acquisition in the sector, could position Apple for a strong iPhone cycle in 2026. Cook said on the earnings call Apple would consider buying other companies to raise its AI capabilities -- something Wall Street analysts have suggested could give Apple's AI efforts a bigger boost. Wedbush analyst Dan Ives, a longtime Apple bull, last month suggested AI startup Perplexity may be a target. And according to reports, Apple had discussions with Claude developer Anthropic and ChatGPT maker OpenAI about utilizing their models versus using in-house options. Jefferies meanwhile raised its price target to about $191, which still implies downside to Apple's current share price. The broker maintained a "hold" rating, adding, it's "hard to get excited," at the company's current valuation. UBS similarly kept a "neutral" rating and raised its target to $220 from $210.

CEO Tim Cook says Apple ready to open its wallet to catch up in AI - The Economic Times

Apple CEO Tim Cook said the company is ready to spend more on AI, including building data centres or buying larger firms. Unlike rivals Microsoft and Google, Apple has been cautious with spending. However, delays with Siri and rising AI competition may push Apple to change its approach.Apple CEO Tim Cook signalled on Thursday that the iPhone maker was ready to spend more to catch up to rivals in artificial intelligence by building more data centres or buying a larger player in the segment, a departure from a long practice of fiscal frugality. Apple has struggled to keep pace with rivals such as Microsoft and Alphabet's Google, both of which have attracted hundreds of millions of users to their AI-powered chatbots and assistants. That growth has come at a steep cost, however, with Google planning to spend $85 billion over the next year and Microsoft on track to spend more than $100 billion, mostly on data centres. Apple, in contrast, has leaned on outside data centre providers to handle some of its cloud computing work, and despite a high-profile partnership with ChatGPT creator OpenAI for certain iPhone features, has tried to grow much of its AI technology in-house, including improvements to its Siri virtual assistant. The results have been rocky, with the company delaying its Siri improvements until next year. During a conference call after Apple's fiscal third-quarter results, analysts noted that Apple has historically not done large deals and asked whether it might take a different approach to pursue its AI ambitions. CEO Cook responded that the company had already acquired seven smaller companies this year and is open to buying larger ones. "We're very open to M&A that accelerates our roadmap. We are not stuck on a certain size company, although the ones that we have acquired thus far this year are small in nature," Cook said. "We basically ask ourselves whether a company can help us accelerate a roadmap, and if they do, then we're interested." Apple has tended to buy smaller firms with highly specialized technical teams to build out specific products. Its largest deal ever was its purchase of Beats Electronics for $3 billion in 2014, followed by a $1 billion deal to buy a modem chip business from Intel. But now Apple is at a unique crossroads for its business. The tens of billions of dollars per year it receives from Google as payment to be the default search engine on iPhones could be undone by U.S. courts in Google's antitrust trial, while startups like Perplexity are in discussions with handset makers to try to dislodge Google with an AI-powered browser that would handle many search functions. Apple executives have said in court they are considering reshaping the firm's Safari browser with AI-powered search functions, and Bloomberg News has reported that Apple executives have discussed buying Perplexity, which Reuters has not independently confirmed. Apple also said on Thursday it plans to spend more on data centres, an area where it typically spends only a few billion dollars per year. Apple is currently using its own chip designs to handle AI requests with privacy controls that are compatible with the privacy features on its devices. Kevan Parekh, Apple's chief financial officer, did not give specific spending targets but said outlays would rise. "It's not going to be exponential growth, but it is going to grow substantially," Parekh said during the conference call. "A lot of that's a function of the investments we're making in AI."

Tim Cook Says Apple Is 'Very Open' To AI Acquisitions Amid Mounting Pressure To Catch Up With Google, Meta And Microsoft - Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

On Thursday, Apple Inc. AAPL CEO Tim Cook said the company is open to considering artificial intelligence acquisitions. During Apple's third-quarter earnings call, Citi analyst Atas Malik asked whether the company would accelerate its AI roadmap through major mergers and acquisitions. Check out the current price of AAPL stock here. Cook responded that Apple has already acquired around seven companies this year and remains "very open to M&A that accelerates our roadmap." Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedApple Is Open To M&A, Says Tim Cook "We are not stuck on a certain size company," Cook said. "Although the ones that we have acquired thus far this year are small in nature... we basically ask ourselves whether a company can help us accelerate a roadmap. If they do, then we're interested." See Also: Apple Faces 18-Month Deadline To Deliver On AI, Says Analyst Apple's M&A History Lags Behind Meta, Google While Cook's comments reflect a willingness to act, Apple's past tells a different story. Its largest-ever acquisition remains the $3 billion Beats Electronics deal in 2014. By contrast, peers like Facebook-parent Meta Platforms, Inc. META acquired WhatsApp for $19 billion, Alphabet Inc.'s GOOG GOOGL Google bought Motorola Mobility for $12.5 billion and Microsoft Corporation MSFT spent a staggering $69 billion on Activision Blizzard. Apple Trails Rivals Like Meta, Microsoft In AI Spending Apple also remains a relatively modest spender on capital expenditures compared to other big tech firms. In the June quarter, it reported $3.46 billion in capex -- its highest since December 2022 -- up from $2.15 billion a year earlier. At that pace, annual spending would total around $14 billion, according to CNBC. In comparison, Meta, Google and Microsoft have spent tens of billions to dominate the AI arms race. Meta alone projects up to $72 billion in annual CapEx, while Google expects $85 billion. Apple Reportedly Eyes Perplexity AI, Mistral And Others Meanwhile, it has been reported that Apple is evaluating Perplexity AI as a possible acquisition. Apple has also reportedly looked at other smaller AI companies like Cohere, Mistral and Thinking Machines Lab. Apple Beats Earnings Expectations In Q3 Revenue Apple posted fiscal third-quarter revenue of $94 billion, surpassing expectations of $89.04 billion. The company closed the quarter with $36.27 billion in cash and cash equivalents. Price Action: Apple shares rose 2.42% in after-hours trading, according to Benzinga Pro. Benzinga's Edge Stock Rankings show that AAPL continues to display strong upward momentum in the short and medium term, though it trends downward over the long term. More detailed performance insights are available here. Read Next: Cathie Wood Dumps Palantir As Stock Touches Peak Prices, Bails On Soaring Flying-Taxi Maker Archer Aviation Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: jamesteohart/Shutterstock AAPLApple Inc$212.591.69%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum29.03Growth32.89Quality74.53Value9.60Price TrendShortMediumLongOverviewGOOGAlphabet Inc$191.64-2.94%GOOGLAlphabet Inc$190.50-3.07%METAMeta Platforms Inc$768.8010.6%MSFTMicrosoft Corp$537.544.73%Market News and Data brought to you by Benzinga APIs

Apple Is Ready to Go on an AI Startup Shopping Spree to Compete

This could come as a response to the company's leading AI talents jumping over to Meta. It's no secret that Apple is struggling to compete in the current AI landscape. Now, the company's CEO, Tim Cook, has confirmed that the Cupertino giant is "open" to acquisitions to accelerate its roadmap. In an interview with CNBC, discussing Apple's third-quarter earnings, Cook said that Apple views AI as "one of the most profound technologies of our lifetime." And as a result, "We are significantly growing our investments," further adding, "We're open to M&A that accelerates our roadmap". "We are significantly growing our investments. We're open to M&A that accelerates our roadmap." Apple's previous attempts with Apple Intelligence, especially its ambitions with Siri, has not come to fruition as expected. And in turn, the company received a lot of backlash, as well as lawsuits. Most of Apple's top AI talents are switching sides to Meta while some of its biggest competitors are thriving in the same space. This leaves Apple in a desperate position, where acquiring another AI startup would be its only option. There were rumors that the company is in talks with Anthropic or OpenAI to create an LLM version of Siri. But it doesn't seem like Apple is moving forward with the partnership. There were also plans to acquire Perplexity AI, which is currently valued at $18 billion. Acquiring Perplexity sounds like the only viable option, since some of the other well-known AI startups may not be interested in acquisition. But the time is not on Apple's side, and if they take too long, then they might get left behind in the growing AI race.

Investors Grow Impatient With Apple's AI Efforts | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Apple has not been transparent about its strategy, while its competitors have announced plans for new AI-centered data centers and devices, CNBC reported Wednesday (July 30). The company's stock is down 15% this year as of Tuesday's close, making it one of only two members of the Magnificent Seven tech companies that have lost value, according to the report. The other company is Tesla. The challenges facing Apple and its image on Wall Street include its delay of the next-generation of its virtual assistant, Siri, OpenAI's announcement that it is developing hardware devices, and concerns that iPhone sales will suffer Apple's competitors are faster in developing meaningful AI features for their smartphones and other devices, the report said. Analysts had hoped that the release of Apple Intelligence last summer would lead consumers to purchase new iPhones, but that didn't happen, per the report. One poll found that only 13% of consumers who bought a new iPhone did so for new features. At the same time, Apple has its strengths, the report said. These include the strength of its iPhone sale, user satisfaction with its products, and the fact that its customers often own several Apple devices. Analysts told CNBC that the company has more than a year to catch up with its competitors in the AI realm, because AI features have not yet become the driver of smartphone sales. Apple's investors have reason to be nervous about the company's "AI crisis," PYMNTS CEO Karen Webster wrote July 23. "Apple Intelligence doesn't appear in any serious public Gen AI rankings," Webster wrote. "It lags behind even X.ai's Grok. That's not a public relations problem. It's a strategic misstep. Maybe even a crater-sized hole that could prove Apple's fatal flaw." It was reported July 14 that investors concerned by Apple's slump in share prices and frustrated with its delays in introducing AI features are calling on the company to buck tradition and acquire or hire new AI talent.

Apple to 'Significantly' Invest in AI, Warns of $1 Billion Tariff Hit | PYMNTS.com

During its fiscal third-quarter earnings conference call with analysts on Thursday (July 31), CEO Tim Cook said that the company is making "good progress" on infusing more AI capabilities in Siri, which are set to come in 2026. The goal is to develop a "more personalized" Siri and for AI features in iOS to be "deeply personal, private and seamlessly integrated," Cook said. Features such as live translation and "workout buddies" are coming soon. "We are significantly growing our investments in AI," Cook said, just as the company did in the fiscal second quarter and will likely also do so in Q4. The investments might include acquiring companies. "We're very open to M&A that accelerates our roadmap," Cook noted. Apple reportedly is interested in acquiring Perplexity AI, which is an AI-powered search engine that also offers shopping and payments services. Cook did not confirm nor deny the rumor, only saying that Apple has acquired seven companies this year thus far, most of them smaller firms, and is not opposed to buying bigger companies. "We're putting all of our energy behind it," Cook said, adding that Apple is "reallocating a fair number of people" to focus on developing AI features. However, Bank of America analysts are more cautiously optimistic. "Apple is likely 3+ years away from delivering a truly modern AI assistant, long after Google and others have integrated such tech," Bank of America wrote in a research note shared with PYMNTS. "While the company is famous for not rushing features to market until they're ready, the pace of AI development externally (by its rivals) is blistering; Apple's slow timeline could leave it far behind in user expectations." Cook said Apple has earmarked $500 billion to invest in the U.S. over four years, which includes opening chip manufacturing plants. It has 24 semiconductor manufacturing plants in 12 states. In August, Apple is opening the Apple Manufacturing Academy in Detroit to train workers. See also: Investors Grow Impatient With Apple's AI Efforts As for tariff headwinds, Cook said Apple posted increased costs of $800 million in the quarter due to tariffs and expects $1.1 billion in the fourth quarter, assuming the tariff policy and macroeconomic situation don't change. The higher hit on tariffs in the next quarter is due to higher sales volumes of its products more than anything else, the company said. Cook said the bulk of the tariffs for the last quarter were related to IEEPA sanctions on imports from China, which President Donald Trump invoked earlier this year. IEEPA sanctions are typically used to address national security threats from foreign adversaries. Cook said the "vast majority" of Apple's products fall under the separate but similar Section 232, which lets the president impose or negotiate import restrictions with other nations in the interest of national security. However, for iPhones sold in the U.S., the "majority" is made in India, Cook said. As for the Mac, iPad and Apple Watch sold to American consumers, the "vast majority" is made in Vietnam. China is the source for the "vast majority" of Apple products sold outside the U.S., Cook added. Asked if the iPhone would lose relevance in the AI era as other companies are devising the next generation of consumer devices, Cook said he sees other devices complementing the smartphone, not replacing it, since it does so much: phone, computer, gaming device, calendar and more. "It's difficult to see a world where iPhones are not living in it," Cook said. Notably, OpenAI has acquired the AI devices startup of Jony Ive, Apple's former designer who worked with founder Steve Jobs to design many of the company's iconic products. OpenAI and Ive plan to develop an AI device that will more naturally interact with people. Cook said that doesn't mean Apple is not considering developing other form factors as well. He did not disclose any more details. As for wearables, Cook said Apple is getting ready to ship Vision OS 26 for the Apple Vision Pro AR headset. "This is a scenario we really believe in," Cook said. Apple is reportedly planning to develop smart glasses, but Cook did not address the rumor. In the third quarter, Apple reported a net income of $23.4 billion, or $1.57 per share, compared with $21.4 billion, $1.40 per share, in the like period a year ago. Revenue came to $94 billion, up 9.6% from $85.8 billion. Analysts expected Apple to earn $1.43 per share in the quarter on revenue of $89.2 billion, according to S&P Global Market Intelligence. The company said iPhone revenues rose by 13% to $44.6 billion, which is a record, driven by upgrades to iPhone 16, with double-digit growth in Europe, Greater China and Asia-Pacific. Mac revenues rose by 15% to $8 billion while iPad sales fell 8% to $6.6 billion. The wearables, home and accessories category, which includes Apple Watch, fell 9% to $7.4 billion. Services revenue was up 13% to $27.4 billion. Apple Marks First-Ever Chinese Store Closure as Sales Fall Apple and Google Declared Mobile Duopoly by UK Regulator

Apple: AI-Focused Growth Strategy Positions Stock for Long-Term Outperformance | Investing.com UK

Apple's (NASDAQ:AAPL) Q3 2025 earnings report marked a decisive shift in the company's strategic narrative. With artificial intelligence now positioned as a core growth lever, CEO Tim Cook's comments during the earnings call signaled that Apple is done playing catch-up in the AI race. The company not only beat analyst expectations on both revenue and earnings but also used the spotlight to unveil an ambitious AI roadmap, marked by internal investment, acquisitions, and the promise of new capabilities. Despite facing headwinds earlier this year, including supply chain disruptions in China, rising tariffs, and a lukewarm stock performance, Apple's latest results helped recalibrate investor sentiment. The company's forward-looking emphasis on AI innovation, coupled with resilient core hardware sales and a $500 billion commitment to U.S. investments, has reassured stakeholders. For its fiscal Q3 2025, Apple reported earnings per share (EPS) of $1.57, representing a 9.48% beat against Wall Street expectations. Total revenue came in at $94.04 billion, a figure that underscores Apple's ability to deliver in a turbulent global economy. iPhone sales once again led the charge, contributing significantly to the top line and reaffirming the centrality of Apple's hardware ecosystem even amid an industry-wide AI pivot. Markets responded swiftly. Apple's stock closed at $207.57 on August 1, 2025, at 4:00:01 PM EDT, and rose to $211.06 in pre-market trading by 8:28:07 AM EDT the following day. This 2.5% increase in after-hours trading highlighted investor enthusiasm not only for the numbers themselves but for the strategic clarity conveyed during the earnings call. Despite a ~15% decline year-to-date, Apple remains the world's second-largest public company by market cap, valued at approximately $3.1 trillion. Its forward price-to-earnings (P/E) ratio of 26.60 suggests that analysts and institutional investors still view the company as a stable, premium growth stock. The 12-month average price target of $232.12 adds further weight to this optimistic outlook, especially considering the broader volatility among tech's so-called "Magnificent Seven." In an environment where other mega-cap peers like Tesla (NASDAQ:TSLA) have also stumbled, Apple's ability to exceed expectations, even modestly, has allowed it to regain some narrative control. The quarterly beat helped alleviate concerns about consumer demand softening and operating pressures in global markets, at least temporarily. While the earnings beat made headlines, it was Tim Cook's comments on artificial intelligence that truly defined the quarter. "We are significantly growing our AI investments," Cook announced during the call, describing a company-wide shift in both capital allocation and human resources. According to Cook, Apple is redirecting internal talent and increasing capital expenditures to support AI development. Yet, in a nod to fiscal discipline, he stressed that rising CapEx remains "manageable through hybrid investment models." So far in 2025, Apple has completed seven acquisitions directly tied to its AI ambitions. These purchases span areas like natural language processing, machine vision, and real-time translation -- sectors that will serve as foundational layers for upcoming features across iOS and macOS. Cook made it clear the company is not done shopping: "We remain open to strategic acquisitions that align with our long-term AI goals." Among the new AI-driven tools announced were visual intelligence capabilities and live translation features, which Apple plans to roll out across its ecosystem in the coming quarters. These innovations will likely be tightly integrated with existing devices, from iPhones and iPads to AirPods and Vision Pro. That said, not everything is arriving soon. The highly anticipated personalized Siri upgrade, billed as a significant leap in contextual and proactive interaction, has been delayed until 2026. Still, Cook was unequivocal in framing Apple's AI vision not as a one-off trend but as a long-term strategic pillar. In addressing concerns that emerging AI-native devices -- like augmented reality (AR) glasses or wearable assistants -- might cannibalize iPhone demand, Cook struck a confident tone. "We view these devices as complementary," he said. Apple's bet is clear: its ecosystem is large enough and trusted enough to absorb new technologies without eroding its core. This integrated approach distinguishes Apple's AI play from competitors like Meta (NASDAQ:META) and OpenAI, which often introduce standalone tools or bet heavily on platform displacement. Apple is, instead, leveraging its installed base to push AI gradually but deeply -- a model it has successfully used before with Touch ID, Face ID, and the M-series chips. Still, Apple's AI pivot isn't without critics. As The Guardian noted, the company has been accused of moving too slowly relative to rivals. While Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) have made sweeping moves -- embedding generative AI into core productivity apps and search infrastructure -- Apple has kept many of its AI projects under wraps, including multiple Siri upgrades that have yet to ship. This opacity has frustrated some observers who view AI as a category where first-mover advantage can be decisive. "Apple's historical success has come from perfecting innovations, not pioneering them," said one analyst quoted by The Guardian. "But in AI, there may not be as much time to wait and refine." The delayed release of personalized Siri only reinforced these concerns, especially since voice interfaces are now viewed as key battlegrounds in AI accessibility. Beyond product criticism, geopolitical and macroeconomic risks also cloud Apple's outlook. Continued tariff tensions with China, combined with periodic manufacturing shutdowns, have threatened Apple's tightly optimized supply chain. While the company has diversified some production to India and Vietnam, its dependence on Chinese assembly lines remains a structural vulnerability. To counterbalance these concerns, Apple reiterated its commitment to $500 billion in U.S. investments over the next several years, a move clearly intended to signal political alignment and domestic prioritization. Cook also noted Apple's willingness to expand its U.S.-based manufacturing and R&D footprint, though no new initiatives were formally announced during the call. Despite these risks, analysts appear broadly reassured by the company's strategic posture. By turning the spotlight toward AI, and backing up its narrative with acquisitions, planned features, and infrastructure investment, Apple is giving investors a tangible reason to stay bullish. *** Looking to start your trading day ahead of the curve? Get up to speed before the bell with Bull Whisper -- a sharp, daily premarket newsletter packed with key news, market-moving updates, and actionable insights for traders. Start your day with an edge. Subscribe to Bull Whisper using this link.

CEO Tim Cook says Apple ready to open its wallet to catch up in AI

SAN FRANCISCO (Reuters) -Apple CEO Tim Cook signaled on Thursday the iPhone maker was ready to spend more to catch up to rivals in artificial intelligence by building more data centers or buying a larger player in the segment, a departure from a long practice of fiscal frugality. Apple has struggled to keep pace with rivals such as Microsoft and Alphabet's Google, both of which have attracted hundreds of millions of users to their AI-powered chatbots and assistants. That growth has come at a steep cost, however, with Google planning to spend $85 billion over the next year and Microsoft on track to spend more than $100 billion, mostly on data centers. Apple, in contrast, has leaned on outside data center providers to handle some of its cloud computing work, and despite a high-profile partnership with ChatGPT creator OpenAI for certain iPhone features, has tried to grow much of its AI technology in-house, including improvements to its Siri virtual assistant. The results have been rocky, with the company delaying its Siri improvements until next year. During a conference call after Apple's fiscal third-quarter results, analysts noted that Apple has historically not done large deals and asked whether it might take a different approach to pursue its AI ambitions. CEO Cook responded that the company had already acquired seven smaller companies this year and is open to buying larger ones. "We're very open to M&A that accelerates our roadmap. We are not stuck on a certain size company, although the ones that we have acquired thus far this year are small in nature," Cook said. "We basically ask ourselves whether a company can help us accelerate a roadmap, and if they do, then we're interested." Apple has tended to buy smaller firms with highly specialized technical teams to build out specific products. Its largest deal ever was its purchase of Beats Electronics for $3 billion in 2014, followed by a $1 billion deal to buy a modem chip business from Intel. But now Apple is at a unique crossroads for its business. The tens of billions of dollars per year it receives from Google as payment to be the default search engine on iPhones could be undone by U.S. courts in Google's antitrust trial, while startups like Perplexity are in discussions with handset makers to try to dislodge Google with an AI-powered browser that would handle many search functions. Apple executives have said in court they are considering reshaping the firm's Safari browser with AI-powered search functions, and Bloomberg News has reported that Apple executives have discussed buying Perplexity, which Reuters has not independently confirmed. Apple also said on Thursday it plans to spend more on data centers, an area where it typically spends only a few billion dollars per year. Apple is currently using its own chip designs to handle AI requests with privacy controls that are compatible with the privacy features on its devices. Kevan Parekh, Apple's chief financial officer, did not give specific spending targets but said outlays would rise. "It's not going to be exponential growth, but it is going to grow substantially," Parekh said during the conference call. "A lot of that's a function of the investments we're making in AI." (Reporting by Stephen Nellis in San Francisco; Editing by Sayantani Ghosh and Tom Hogue)

What did Tim Cook say about Apple AI: iPhone maker's AI strategy revealed

Apple open to acquiring AI companies, reallocating resources and boosting capex Tim Cook is finally opening up about Apple's artificial intelligence ambitions and it's clear the company is ready to play catch-up with intent. Speaking during Apple's Q3 2025 earnings call, the CEO said Apple is "very open" to acquiring companies that can accelerate its AI roadmap, marking a shift from its traditionally tight-lipped, inward-looking approach. "We're investing significantly in AI," Cook emphasized. "We've redirected people and resources toward it. We're very open to M&A to accelerate our work." This rare openness from Apple's top executive showss how central AI has become to the company's future and how much pressure it feels to respond to rivals like Microsoft, Google, and OpenAI. Also read: Apple may ditch in-house AI model for Siri, in talks with OpenAI and Anthropic For years, Apple has treated AI as an internal technology layer, powerful but invisible. That changed with the launch of Apple Intelligence, the company's new suite of AI features baked into iOS 18, iPadOS 18, and macOS Sequoia. These tools include writing suggestions, image cleanup, and even a new visual understanding system, but the most anticipated update - a fully revamped Siri - has been delayed to 2026. Still, Cook says progress is steady. "We're making great progress, and the new experiences are just the beginning," he said. What's different this time is not just the product lineup, but Apple's posture. It has already acquired around seven companies this year, many tied to AI and machine learning, and more deals are likely on the table. Apple's historical acquisition strategy has been cautious and quiet, small teams, strategic technology, low risk. But now, the company says it's not limiting itself by company size. "We're not adverse to spending. If there's a way to accelerate, we'll do it," Cook said. That statement alone is enough to make analysts sit up. Apple has long preferred to build in-house rather than buy. But with the AI race speeding up, it's clear Cook doesn't want Apple to be left behind. Chief Financial Officer Kevan Parekh added that capital expenditure is expected to grow substantially, primarily driven by AI infrastructure, including data centers and compute resources. Also read: Apple may completely revamp Siri with own LLM support and more advanced AI features: Report "You'll see that reflected in our numbers, though it won't be exponential but meaningful," Parekh said. Apple has always prided itself on integrating AI in a "privacy-first" way. That continues, with all Apple Intelligence features being opt-in, processed on-device or via Private Cloud Compute, and tightly aligned with Apple's long-standing user protection ethos. But beneath the privacy language is a more aggressive Apple, a company aware it has catching up to do, and finally willing to spend, hire, and build faster. Cook's statements are the clearest yet that Apple sees generative AI as more than a feature, it's a platform shift. From revamping Siri to rethinking how users interact with text, visuals, and workflows across devices, Apple is preparing for a future where AI isn't just helpful, but it's expected. The competition is fierce. Google is embedding Gemini everywhere. Microsoft has Copilot in Windows. OpenAI is releasing agents. Apple, known for taking its time, is now accelerating. And with Tim Cook personally signaling readiness to open the checkbook, the AI era at Apple might truly begin.