Apple's Tim Cook Signals Bigger Investments in Data Centers & Acquisitions

 

 

Apple CEO Tim Cook has announced that the iPhone maker is prepared to significantly increase spending on artificial intelligence (AI), signaling a shift from the company’s traditionally conservative spending habits. Speaking after Apple’s fiscal Q3 earnings, Cook said the company is ready to invest in data centers, AI infrastructure, and even large acquisitions to close the gap with AI rivals like Microsoft and Google.

Apple has historically focused on smaller acquisitions, buying niche startups with specialized AI teams to enhance products like Siri and iPhone AI features. So far in 2025, Apple has already acquired seven AI-focused startups, but Cook suggested the company is open to larger deals if it accelerates its AI ambitions.

While Microsoft and Google’s Alphabet dominate the AI race with ChatGPT-powered tools and Bard/Google Gemini assistants, Apple has struggled to keep pace. Microsoft is expected to spend $100 billion on AI and data centers this year, while Google plans USD85 billion in AI infrastructure spending.

In contrast, Apple’s AI investment has been modest, traditionally relying on third-party cloud providers for its data processing needs. Despite its partnership with OpenAI to power some iPhone AI features, Apple continues to develop AI technology in-house, including a major Siri upgrade—now delayed until 2026.

Cook emphasized that Apple AI strategy will focus on three areas:

• Expanding Apple-owned data centers to reduce dependency on external cloud services.
• Enhancing Siri and iPhone AI tools to compete with AI chatbots like ChatGPT and Google Gemini.
• Acquiring AI startups and potentially larger companies to accelerate AI innovation.