Apple plans to ‘significantly’ grow AI investments and is open to M&A

On Thursday, Apple indicated a renewed commitment to advancing its artificial intelligence initiatives, aiming to enhance its competitive edge in the rapidly evolving tech landscape. CEO Tim Cook emphasized the significance of AI during the company's Q3 2025 earnings call, stating, "We see AI as one of the most profound technologies of our lifetime. We are embedding it across our devices and platforms and across the company." He further revealed plans for substantial investment growth in AI, highlighting that Apple's core philosophy revolves around integrating advanced technologies for universal accessibility. Cook elaborated on the company's strategic realignment, mentioning that a significant number of employees are being reassigned to prioritize AI development. "We have a great, great team and we’re putting all of our energy behind it," he shared, indicating that the push towards AI is also reflected in the company's increased capital expenditures for the year. However, he noted that Apple continues to utilize a hybrid model, leveraging third-party investments alongside its own. In a prior interview with CNBC, Apple acknowledged its openness to mergers and acquisitions as a means to expedite its AI goals, revealing that it has acquired seven companies in the current year, albeit none at substantial cost. Despite facing criticism for being slow to adapt to the AI era, Apple has countered that it prioritizes quality over speed, asserting that hastily launching subpar products could be detrimental. The tech giant has introduced over 20 Apple Intelligence features to date, including tools for visual intelligence and content creation. Upcoming AI features, such as live translation and an AI-powered workout assistant, are slated for release later this year, although enhancements to Siri have been postponed until 2026. Cook reassured investors that progress on the Siri update is on track. Following the earnings call, Apple reported better-than-expected iPhone sales and record revenues for Q3, resulting in a surge in after-hours stock trading.