Apple Expands AI Investments and Considers Acquisitions to Advance Strategy

Apple is ramping up its focus on artificial intelligence, with CEO Tim Cook stating during the company's Q3 2025 earnings call that AI is "one of the most profound technologies of our lifetime" and that Apple is embedding it across its devices, platforms, and operations. Cook noted that the company is "significantly growing our investments" in AI and reallocating staff to support these efforts. "We have a great, great team and we're putting all of our energy behind it," he said.

The company reported an increase in capital expenditures driven by AI investments, though it continues to use a hybrid model that relies partly on third-party capital, limiting exponential growth in spending. In an interview with CNBC, Apple indicated it is open to mergers and acquisitions to accelerate its AI roadmap and has acquired seven companies this year, none of which were large in dollar terms. Cook added that Apple is making acquisitions at a rate of about one every several weeks.

Apple has faced criticism for delays in delivering some AI features, including improvements to Siri, but maintains that it prioritizes launching reliable products over being first to market. The company has introduced more than 20 AI-powered features so far, such as visual intelligence and writing tools, and plans to launch additional features like live translation and an AI-powered workout assistant later this year. However, more advanced Siri updates have been postponed to 2026. Cook told investors the company is "making good progress" on the Siri update.

Addressing speculation about the future of AI hardware, Cook said he expects the iPhone to remain central even as new devices emerge, suggesting that AI devices will likely complement rather than replace existing products. Apple reported better-than-expected iPhone sales and record revenue for the quarter, leading to a rise in its stock price after hours.