Apple CEO Tim Cook confirmed during the company’s Q3 2025 earnings call that Apple plans to significantly ramp up its investment in artificial intelligence (AI). The company is now reallocating staff toward AI-focused roles and is “very open” to mergers and acquisitions that can accelerate its AI roadmap, regardless of the acquired company’s size.
This marks a strategic shift from Apple’s traditionally conservative approach. So far in 2025, Apple has acquired seven smaller companies—some related to AI—which reflects a new willingness to consider larger deals to bolster its AI capabilities. The company has been linked to potential interest in AI search startup Perplexity, among others.
Apple’s capital expenditures rose meaningfully in the June quarter, partly driven by AI priorities. CFO Kevan Parekh emphasized that although spending won’t explode overnight, it will nonetheless increase substantially in the context of long‑term goals. This growth forms part of a broader $500 billion U.S. investment plan over the next four years, which includes hiring roughly 20,000 people in AI, silicon engineering, software, and R&D roles, along with new infrastructure developments such as a server manufacturing facility in Houston slated for 2026.
Apple aims to integrate AI into its product ecosystem under the “Apple Intelligence” initiative—currently offering over 20 generative features like writing assistance, image-based tools, and cleanup utilities. While a fully refreshed, AI-powered version of Siri is anticipated in 2026, live translation and smart workout features are expected later in 2025. Despite previous delays and criticisms for lagging behind competitors, Apple views its AI push as carefully controlled and aligned with its privacy-first ethos.
Cook underscored his belief that AI will touch all of Apple’s devices, but the company sees the iPhone remaining central to its strategy—with new AI-powered hardware playing complementary roles. His statement reflects a keen desire to close the gap with rivals like Google and Microsoft, who are making enormous AI infrastructure investments.
