&imwidth=800&imheight=600&format=webp&quality=medium "Tim Cook’s bold AI move: How Apple plans to compete with Google and Microsoft")
Apple to boost AI spending, open to buying bigger companies
Apple CEO Tim Cook has said the company is ready to invest more in artificial intelligence (AI), and they also have the option to buy larger firms as it aims to match up with rivals like Microsoft and Google. He made these comments during Apple’s recent third-quarter earnings call, where he confirmed that Apple has already bought seven small companies this year. However, he added that the company is open to larger deals if they can speed up Apple's AI roadmap.
Apple’s AI journey and current challenges
While companies like Microsoft and Google have invested tens of billions of dollars into AI, as till now Apple has been more cautious. As per Reuters, Google plans to spend around $85 billion and Microsoft more than $100 billion, mostly on building data centres.
Apple, on the other hand, has mainly relied on third-party cloud services and in-house development. Its partnership with OpenAI added ChatGPT features to iPhones, but internal upgrades like improvements to Siri have been delayed until 2025.
"We're very open to M&A that accelerates our roadmap," said Tim Cook during the call. “We are not stuck on a certain size company.”
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Bigger data centre investments ahead
Apple’s Chief Financial Officer, Kevan Parekh, said the company plans to spend more on data centres, especially to support AI work that aligns with Apple’s strict privacy standards.
"It's not going to be exponential growth, but it is going to grow substantially," Parekh said. “A lot of that's a function of the investments we're making in AI.”
Apple’s typical data centre spending is relatively modest, usually only a few billion dollars per year; however, this is now set to increase.
Could Apple acquire Perplexity AI?
Reports by Bloomberg suggest Apple has shown interest in Perplexity, an AI-powered search engine that could challenge Google’s dominance. Apple has also confirmed in court that it is considering integrating more AI tools into Safari to make it a stronger search platform.
These efforts come as the company faces uncertainty about its search deal with Google, which brings in billions annually but is under legal review in a US antitrust case.
Apple’s last major deal was its $3 billion purchase of Beats Electronics in 2014. Whether the tech giant will now make another big move in the AI space remains to be seen.
