Apple CEO Tim Cook Signals Increased AI Spending, Acquisitions to Catch Up with Microsoft, Google

Apple CEO Tim Cook has announced a strategic shift toward increased spending on artificial intelligence to catch up with competitors like Microsoft and Google, which are heavily investing in AI and data centers. Historically frugal, Apple is now open to acquiring larger companies that can accelerate its AI roadmap, having already purchased seven smaller firms this year. The company has relied on partnerships, including with OpenAI, and in-house development for AI features such as Siri, though progress has been slower than rivals, with improvements to Siri delayed until next year. Apple also faces potential risks to its lucrative deal with Google, which pays billions to be the default search engine on iPhones, amid ongoing antitrust trials. This pivot includes plans to build more data centers and reallocate internal resources to AI projects, signaling a significant shift in Apple's approach to maintaining competitiveness in the AI sector. Cook emphasized that acquisitions will be evaluated based on their ability to accelerate Apple's AI development rather than company size.