Apple CEO Tim Cook has indicated that the company is ready to increase its spending on artificial intelligence (AI), potentially through building more data centers or acquiring larger firms — a significant shift from Apple’s traditionally cautious spending habits.
While tech giants like Microsoft and Google are pouring billions into AI development and infrastructure — with Google planning $85 billion and Microsoft exceeding $100 billion mostly on data centers — Apple has taken a slower, more self-contained approach. It has relied on external data center providers and focused on building AI tools in-house, including upgrades to Siri, which have since been delayed until next year.
On a conference call following Apple’s Q3 financial results, Cook addressed questions about whether Apple might consider a more aggressive strategy. He revealed the company has already acquired seven smaller AI-related companies this year and is open to bigger mergers and acquisitions.
“We’re very open to M&A that accelerates our roadmap,” said Cook. “We basically ask ourselves whether a company can help us accelerate a roadmap, and if they do, then we’re interested.”
Historically, Apple has preferred small, strategic acquisitions, like its $3 billion Beats Electronics deal in 2014 — still its largest — and a $1 billion modem business acquisition from Intel. But growing competition and shifting dynamics in the tech space may be pushing Apple to rethink that strategy.
The company could face disruption if courts challenge its lucrative arrangement with Google, which pays Apple billions annually to remain the default search engine on iPhones. Meanwhile, AI-powered startups like Perplexity are exploring partnerships with phone makers, potentially challenging Google’s dominance in mobile search.
Bloomberg has reported that Apple may be considering buying Perplexity, although this remains unconfirmed by Reuters.
In addition to M&A, Apple plans to boost spending on its own data centers, a space it has historically under-invested in. The company is utilizing its own chips to handle on-device AI tasks with strict privacy safeguards — a key part of Apple’s value proposition.
Apple CFO Kevan Parekh said while spending wouldn’t skyrocket, it will increase meaningfully. “It’s not going to be exponential growth, but it is going to grow substantially,” he noted, adding that the rise reflects Apple’s commitment to expanding its AI capabilities.
