Apple CEO Tim Cook has confirmed the company’s intensified focus on artificial intelligence, emphasizing a major strategic shift as the tech giant ramps up its investment and talent allocation in the space. Speaking during the company’s Q3 earnings call, Cook revealed that Apple is “significantly growing” its AI investments and has already completed around seven acquisitions this year to bolster its AI roadmap. “We’re very open to M&A that accelerates our roadmap… we’re putting all of our energy behind it,” he said, underlining the company’s proactive stance.
Apple’s move comes amid growing pressure from Wall Street to keep pace with tech rivals like Google, Meta, and Microsoft, all of which have made substantial AI advancements. While Apple’s capital expenditure for the June quarter reached $3.46 billion—its highest since late 2022—it still lags far behind Google’s anticipated $85 billion and Meta’s $72 billion spend. However, Apple’s strategy stands apart: it leans heavily on tight hardware-software integration and private cloud computing, leveraging its custom silicon to deliver secure and efficient AI experiences across its devices.
In a notable internal shift, Cook revealed that Apple is making significant changes to its workforce to support AI development. “We are also reallocating a fair number of people to focus on AI features,” he said, highlighting a broader restructuring aimed at accelerating AI innovation within the company. Supporting this, CFO Kevan Parekh noted that the recent surge in spending is “largely driven by Apple’s AI initiatives.”
Cook emphasized that the iPhone remains the cornerstone of Apple’s ecosystem, describing new AI technologies as enhancements rather than replacements. “AI devices are complementary, not substitution,” he stated, reinforcing that the core of Apple’s strategy is to integrate AI into its existing product line in a seamless and privacy-first manner.
Calling AI “one of the most profound technologies of our lifetime,” Cook reaffirmed Apple’s long-term vision to embed artificial intelligence thoughtfully and securely into its platforms—blending innovation with the company’s hallmark emphasis on user privacy and product experience.
