Apple will “significantly” increase its artificial intelligence spending, CEO Tim Cook said Thursday after the company reported a 10% year-over-year rise in third-quarter revenue.
Cook confirmed that Apple plans to acquire more companies to strengthen its AI roadmap. “We’re very open to M&A that accelerates our roadmap,” he said, noting that Apple had purchased “around” seven firms this year, though not all were AI-focused.
The company reported $3.46 billion in capital expenditures for the June quarter, its highest since December 2022, but still far behind Google, Meta, and Microsoft, which plan tens of billions in AI-related spending.
Cook emphasized that Apple is shifting internal teams toward AI features. “We are also reallocating a fair number of people to focus on AI features within the company,” he said.
Apple finance chief Kevan Parekh said a large part of the company’s growth is now driven by AI investments, including servers using Apple’s own chips under its Private Cloud Compute initiative.
“The way that we look at AI is that it’s one of the most profound technologies of our lifetime,” Cook said. “It will affect all devices in a significant way.”
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