Apple Signals Bigger AI Investments as Tim Cook Opens Door to Major Deals
Apple is prepared to increase spending significantly to close the gap with rivals in artificial intelligence (AI), CEO Tim Cook said on Thursday. The move signals a shift from Apple’s historically cautious spending approach and includes potential acquisitions of larger AI companies or building more data centres.
Cook made the comments during a call following Apple’s fiscal third-quarter earnings report. He acknowledged that while Apple has already acquired seven smaller companies this year, the company is now open to bigger deals that could speed up its AI roadmap.
Falling Behind in the AI Race
Unlike Microsoft and Google—both of which have invested over $85 billion and $100 billion respectively in data centres and AI—Apple has taken a more conservative route. It has relied on third-party data centre providers and prioritised in-house development for AI tools, such as enhancements to its Siri assistant. However, Apple has delayed those Siri improvements until 2026, which reflects some internal challenges.
Apple’s partnership with OpenAI has added certain AI features to the iPhone, but the tech giant still lags behind its peers in public AI offerings. Google and Microsoft have both launched widely used AI chatbots, gaining hundreds of millions of users.
Apple Data Centre Spending to Increase
Apple’s Chief Financial Officer Kevan Parekh said the company will increase its investment in data centres, though he declined to offer exact figures. “It’s not going to be exponential growth, but it is going to grow substantially,” he said.
Apple currently uses its own chip designs for AI processing, which help maintain the brand’s focus on privacy and device security. However, the growing demand for on-device and cloud-based AI features will likely require broader infrastructure support.
Mergers and Acquisitions Back on the Table
Historically, Apple has shied away from large acquisitions. Its biggest purchase to date was Beats Electronics for $3 billion in 2014. But Cook made it clear the company is now considering bigger deals if they align with Apple’s AI goals.
“We’re very open to M&A that accelerates our roadmap,” Cook said. “We basically ask ourselves whether a company can help us accelerate a roadmap, and if they do, then we’re interested.”
Reports also suggest that Apple may be eyeing Perplexity, an AI-powered search startup, as a potential acquisition. Although Reuters has not confirmed this, Bloomberg reports indicate discussions have taken place. Apple has also hinted at redesigning its Safari browser to integrate AI-powered search tools—an area where competition is rising quickly.
Apple may soon face additional pressure if the US courts overturn its multi-billion-dollar deal with Google, which makes Google the default search engine on iPhones. Emerging AI startups are already positioning themselves as alternatives.
As AI becomes a crucial part of the tech industry’s future, Apple appears poised to shift its long-standing spending habits to keep up with the competition.
with inputs from Reuters