While Apple may be late to the AI race, CEO Tim Cook has made it clear the company is now going all in. During Apple’s third-quarter earnings call, Cook acknowledged the growing importance of AI and called it a “transformative” technology. He assured investors that Apple is actively reallocating resources and talent to ramp up its AI efforts as it aims to catch up with competitors and lead in the development of next-generation AI technologies.
Apple CEO Tim Cook signaled the iPhone maker was ready to spend more to catch up to rivals in artificial intelligence by building more data centers or buying a larger player in the segment, a departure from a long practice of fiscal frugality https://t.co/FKoQ5seD6b
— Reuters (@Reuters) August 1, 2025
Cook describes AI as “one of the most profound technologies of our lifetime.” He emphasized that Apple is embedding AI across all its devices, platforms, and internal functions, adding, “We are also significantly growing our investments.” Cook highlighted Apple’s user-centric approach to AI: “Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that’s at the heart of our AI strategy.”
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To reflect this shift, Apple has reportedly reallocated staff and resources to AI-focused projects. “We have a great, great team and we’re putting all of our energy behind it,” Cook said. While capital expenditure is trending higher this year due to AI initiatives, Apple continues to rely on third-party partners for parts of its infrastructure, tempering overall CapEx growth. In a CNBC interview, Cook revealed that Apple had made seven acquisitions in 2025 alone—modest in size but strategically significant. “None was huge,” he noted, adding that Apple is “making acquisitions at the rate of one every several weeks.”
Here’s what Tim Cook thinks about AI replacing the iPhone https://t.co/VhXKmkuGNI
— Business Insider (@BusinessInsider) August 1, 2025
Despite these moves, Apple has been criticized for being slow to react to the AI wave. Flagship features like the revamped AI-powered Siri have missed expected launch timelines, with reports suggesting even internal demos were underwhelming. Cook, however, defended Apple’s cautious approach: “Rushing out the wrong features or the wrong products just to be first would be a mistake,” he said, underscoring Apple’s commitment to quality and functionality over speed.
Under the “Apple Intelligence” banner, the company has already rolled out over 20 AI features, including Visual Intelligence, a Writing Assistant, and a Cleanup tool. More are coming later this year, like live translation and an AI workout companion. Siri’s major overhaul, however, has been delayed to 2026. Addressing future competition, particularly AI hardware like Meta’s proposed smart glasses, Cook said, “It’s difficult to see a world where iPhones aren’t living in it,” suggesting complementary devices, not replacements. Meanwhile, anticipation is building for the rumored iPhone 17 Air—believed to be the thinnest iPhone yet—expected to launch next month.
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