Apple Signals Major AI Investment Shift, Open to Big Acquisitions
- tech360.tv
- Aug 4, 2025
- 2 min read
Apple CEO Tim Cook said the company is ready to increase spending to catch up in artificial intelligence, including building more data centres or acquiring larger firms.
The move marks a shift from Apple’s traditionally cautious spending approach, as rivals like Microsoft and Google pour tens of billions into AI development.
Microsoft is projected to spend more than USD 100 billion, while Google plans to invest USD 85 billion over the next year, largely on data centres.
Apple has so far relied on external data centre providers and focused on in-house AI development, including updates to its Siri assistant, which have been delayed until next year.
Despite a partnership with OpenAI for iPhone features, Apple has not matched the scale of its competitors’ AI rollouts.
During a conference call following Apple’s fiscal third-quarter results, Cook said the company had acquired seven smaller firms this year and is open to larger deals.
“We’re very open to M&A that accelerates our roadmap,” Cook said. “We are not stuck on a certain size company.”
Apple shares rose 1.7% in premarket trading on Friday.
Historically, Apple has acquired smaller firms with specialised technical teams. Its largest deal to date was the USD 3 billion purchase of Beats Electronics in 2014, followed by a USD 1 billion acquisition of Intel’s modem chip business.
Apple may face further pressure as its lucrative deal with Google, which makes Google the default search engine on iPhones, could be threatened by a U.S. antitrust trial.
Startups like Perplexity are also exploring AI-powered browsers that could challenge Google’s dominance in search.
Apple executives have said they are considering integrating AI-powered search into the Safari browser. Bloomberg News reported that Apple has discussed acquiring Perplexity, though this has not been independently confirmed.
Apple also announced plans to increase spending on data centres, an area where it typically invests only a few billion dollars annually.
Chief Financial Officer Kevan Parekh said spending will rise significantly, though not exponentially.
“A lot of that’s a function of the investments we’re making in AI,” Parekh said.
Apple plans to boost AI spending, including on data centres and acquisitions
CEO Tim Cook says company is open to buying larger firms
Apple has acquired seven smaller companies this year
Source: REUTERS
