Is Apple finally ready to buy big in the AI race? Tim Cook is ready to pay

In a significant departure from its historically conservative approach, Apple appears poised to embrace larger mergers and acquisitions in the competitive landscape of artificial intelligence. During the Q3 2025 earnings conference, CEO Tim Cook expressed a willingness to pursue substantial deals if they align with the company's strategic goals in AI. When questioned by Citi analyst Atif Malik about the urgency for Apple to enhance its AI strategy, Cook emphasized that the size of an acquisition target is not a limiting factor. "We’re very open to M&A that accelerates our roadmap," he stated, indicating that the potential to advance their technological capabilities is the primary focus. This marks a pivotal shift for Apple, which has traditionally shied away from significant purchases, with the notable exception of its $3 billion acquisition of Beats in 2014. Recent discussions within Apple have reportedly included the potential acquisition of Perplexity, an AI search startup valued at over $18 billion following a recent $1 billion funding round. Such a move would represent a dramatic increase in Apple's acquisition scale. Although Cook mentioned that Apple has made seven acquisitions in 2025, he refrained from detailing future transactions. CFO Kevan Parekh also indicated that the company anticipates a rise in spending aligned with its AI initiatives, stating, "It's not going to be exponential growth, but it is going to grow substantially." This shift towards AI investment comes as Apple faces mounting pressure to keep pace with tech giants like Microsoft and Google, both of which have made significant advancements through substantial financial commitments in AI technologies. While a Morgan Stanley report described the need for Apple to acquire an AI search company as “misguided,” Cook’s comments suggest a more adaptable strategy. Should a company offer significant enhancements to Apple’s capabilities, the tech giant is open to making the necessary investment.