Apple CEO Tim Cook has confirmed a major strategic shift, signaling a new and profound commitment to artificial intelligence with a readiness to spend significantly to catch up with rivals. This is a departure from Apple’s traditional cautious spending habits and includes plans to build more data centers and potentially make a large acquisition. The move is a direct response to the tens of billions of dollars that competitors like Microsoft and Google are spending on AI.
The pressure is on for Apple to accelerate its AI development. While competitors have seen massive growth in their AI services, Apple’s own AI efforts, including improvements to Siri, have been delayed. The company’s recent partnership with OpenAI for some iPhone features shows its awareness of the need to compete, but this new commitment to spending suggests a more aggressive, long-term plan.
Cook also directly addressed the company’s M&A strategy, stating that Apple is “not stuck on a certain size company” and is “very open to M&A that accelerates our roadmap.” This new openness to larger deals suggests that Apple is prepared to make a multi-billion-dollar acquisition if it can help the company achieve its AI goals.
In addition to M&A, Apple’s CFO, Kevan Parekh, confirmed that spending on data centers would “grow substantially” to support the company’s AI initiatives. This infrastructure investment is a key part of Apple’s strategy to build a robust, in-house AI ecosystem that can handle its own technology and maintain its strict privacy controls.