Apple plans to ‘significantly’ grow AI investments, Cook says

Apple has stepped up its commitment to artificial intelligence, signaling a significant shift in its strategy to remain competitive in the evolving tech landscape. During the Q3 2025 earnings call, CEO Tim Cook emphasized the profound impact AI has on technology today. "We view AI as one of the most transformative technologies of our time. It’s being integrated across our devices, platforms, and throughout the organization, and we are substantially increasing our investments in this area," he stated. Cook elaborated on Apple's approach, mentioning that the company is reallocating a considerable number of resources to focus specifically on AI initiatives. "We have a fantastic team dedicated to this effort, and we’re channeling our energy into making significant advancements," he continued. This renewed focus on AI is also reflected in Apple's increased capital expenditures, though the company maintains a hybrid investment model that includes reliance on third-party capital, limiting exponential growth in spending. In a prior interview with CNBC, Apple indicated its openness to mergers and acquisitions to expedite its AI development roadmap. Cook noted that the company has made seven acquisitions this year, none of which were significant in terms of financial impact, and mentioned a consistent pace of acquiring new companies every few weeks. Despite facing criticism for being slow to adapt to the AI landscape, Apple has introduced various AI features, although some promised functionalities, like an enhanced version of Siri, have yet to be released. Apple argues that rushing to launch incomplete products would be detrimental. The company has already rolled out over 20 AI capabilities, including features for visual intelligence and writing assistance. Looking ahead, Apple aims to launch exciting new AI features later this year, such as live translation and an AI-driven workout companion, while improvements to Siri have been pushed back to 2026. Cook also shared insights on how AI might influence the iPhone market in the future, especially in light of comments from Meta’s CEO regarding AI glasses as a potential new interface. He expressed skepticism about a world where the iPhone is not central to the tech ecosystem, suggesting that any new AI devices will likely serve as complements rather than replacements for existing technology. In a positive turn, Apple reported stronger-than-expected iPhone sales and record revenue for the quarter, leading to a surge in after-hours trading following the earnings announcement.