Apple CEO Tim Cook has made it clear that the company is ready to bet big on artificial intelligence, signaling a potential shift in strategy with an emphasis on both major acquisitions and increased infrastructure spending. This new approach marks a significant departure from Apple’s traditional cautious fiscal management and is designed to help the tech giant catch up to competitors who have already invested heavily in the AI space.
The need for this change is driven by the success of rivals. While Microsoft and Google have seen explosive growth in their AI services, Apple’s own AI efforts have struggled to gain similar traction. The company’s recent partnership with OpenAI for some iPhone features shows an acknowledgment of the competitive gap, and the new spending plan indicates a desire to bridge that gap with more internal and acquired resources.
During a conference call, Cook addressed the possibility of larger acquisitions, a break from Apple’s long-held practice of buying smaller firms. He stated that the company is “very open to M&A that accelerates our roadmap” and is “not stuck on a certain size company.” This suggests that a blockbuster deal, possibly bigger than the $3 billion acquisition of Beats, is now a real possibility if it can help Apple achieve its AI goals.
Apple’s CFO, Kevan Parekh, added that the company’s spending on data centers, a historically lean area for the company, would “grow substantially.” This investment is critical for Apple to power its in-house AI technology, particularly its improvements to Siri, which have been delayed. By building more of its own data centers, Apple can better control its AI development and ensure its privacy standards are met.