Apple to Significantly Grow AI Investments & Acquisitions
Apple is significantly increasing its investments in artificial intelligence, as stated by CEO Tim Cook during the company’s Q3 2025 earnings call. Cook described AI as “one of the most profound technologies of our lifetime,” emphasizing its integration “across our devices and platforms and across the company.” He added that Apple’s AI strategy centers on “taking the most advanced technologies and making them easy to use and accessible for everyone.”
To support this push, Cook noted that Apple is “reallocating a fair number of people” to focus on AI, leveraging its “great, great team” with full energy. These AI investments are also contributing to an increase in year-to-date capital expenditures. However, Apple clarified its continued reliance on a hybrid model, involving third-party capital investments, which will prevent exponential growth in this figure.
Ahead of the earnings call, Apple informed CNBC of its openness to mergers and acquisitions (M&A) to accelerate its AI roadmap. The company disclosed it had already acquired seven companies this year, none of which were “huge” in financial terms, with acquisitions occurring at a rate of roughly one every several weeks.
Apple has faced criticism for perceived slowness in the AI race, with some announced AI features yet to ship. Accusations include showcasing an improved AI-powered Siri that was not close to launch readiness. In response, Apple has defended its cautious approach, asserting that rushing features or products to market prematurely, especially if they don’t perform as promised, would be a mistake.
To date, Apple states it has released over 20 “Apple Intelligence” features, including tools for visual intelligence, cleanup, and writing. Later this year, Apple anticipates launching additional AI capabilities such as live translation and an AI-powered workout companion. However, more personalized improvements to Siri have been delayed until 2026, though Cook stated the company is “making good progress” on this update.
Cook also addressed the potential impact of new AI hardware on the iPhone business, contrasting his view with Meta CEO Mark Zuckerberg’s recent suggestion that AI glasses could become the primary form factor, leaving those without them behind. Cook disagreed, stating, “It’s difficult to see a world where iPhone’s not living in it,” and suggested that new AI devices would likely be “complementary devices, not substitutions” to the iPhone. The executive declined to answer a question regarding which AI technologies Apple believes will eventually become commoditized, citing strategic reasons.
Financially, Apple reported better-than-expected iPhone sales and record revenue for Q3, leading to a rise in its stock during after-hours trading.