Apple CEO Tim Cook has confirmed a major “U-turn” in the company’s long-standing financial strategy, signaling a readiness to spend significantly on artificial intelligence to catch up with rivals. This marks a clear departure from Apple’s traditional cautious spending habits and is a direct response to the tens of billions of dollars that competitors like Microsoft and Google are pouring into AI. The new direction includes plans to build more data centers and a newfound openness to large acquisitions.
Apple has been under mounting pressure to accelerate its AI development. The company has seen its rivals achieve massive growth with their AI services, while its own efforts, including improvements to Siri, have been delayed. The recent partnership with OpenAI for some iPhone features was a temporary solution, but this new commitment to spending suggests a more aggressive, long-term plan to build a competitive, in-house AI ecosystem.
In a significant shift, Cook directly addressed the company’s M&A strategy, stating that Apple is “not stuck on a certain size company” and is “very open to M&A that accelerates our roadmap.” This new openness to larger deals suggests that Apple is prepared to make a multi-billion-dollar acquisition if it can help the company achieve its AI goals, a marked change from its usual practice of buying smaller companies.
To provide the necessary foundation for this AI push, Apple’s CFO, Kevan Parekh, confirmed that spending on data centers would “grow substantially.” This infrastructure investment is a key part of Apple’s strategy to build a robust, in-house AI ecosystem that can handle its own technology and maintain its strict privacy controls, a core pillar of its brand.