Apple is stepping up its game. After months trailing behind competitors in the artificial intelligence race, CEO Tim Cook has signaled a major change in direction. During Apple’s latest earnings call, Cook told analysts the iPhone maker is getting serious about AI—and it’s ready to spend big to catch up.
Apple’s Newfound Openness to Acquisition
Historically, Apple has avoided flashy acquisitions. The company prefers to quietly buy small firms with specific technical skills. Most of these purchases are never widely discussed. Their largest buy to date? Beats Electronics, back in 2014, for $3 billion. That was followed by a $1 billion deal to snap up Intel’s modem chip division in 2019.
But times are changing, and so, it seems, is Apple. “We’re very open to M&A that accelerates our roadmap,” said Cook on the call. “We are not stuck on a certain size company.”
“We basically ask ourselves whether a company can help us accelerate a roadmap, and if they do, then we’re interested,” Cook added.
It’s a clear signal to the market that Apple is willing—perhaps even eager—to break its traditional mold if it helps the company gain a serious competitive edge in the AI battle.
Timeline: Apple’s Struggle to Compete in AI
- 2023: Apple noticeably falls behind while Microsoft and Google dominate with their AI assistants and chatbots.
- Early 2024: Despite a partnership with OpenAI for smarter iPhone features, Apple delays its Siri revamp.
- Mid-2024: Rumors begin swirling around Apple possibly acquiring AI browser startup Perplexity.
- August 2024: Tim Cook announces Apple is open to acquiring larger firms to speed up its AI plans.
What’s Driving the Shift?
While many expected Apple to continue its cautious path, external pressure is mounting. Microsoft plans to spend over $100 billion, and Google isn’t far behind with an $85 billion investment—mostly on data centers needed to fuel their AI products.
Apple, until recently, relied on external data providers while developing much of its AI software in-house. That hasn’t gone as smoothly. Improvements to Siri, for example, are now delayed until next year. It’s clear they’ve hit some internal roadblocks.
The company is also facing risk in its current revenue flows. Payments from Google, which reportedly run into tens of billions annually to be the default search engine on Safari, could vanish pending the outcome of an antitrust trial in the U.S.
Considerations Around Perplexity
The AI-powered browser startup Perplexity has stirred curiosity for more than one reason. Not only is it in discussions with manufacturers about future AI features, but it also seems like a natural alternative to Google’s search dominance if Apple needs to pivot.
Bloomberg has reported that Apple executives have seriously discussed acquiring Perplexity. While Reuters hasn’t confirmed those reports, the speculation adds spice to Apple’s possible new M&A era. For Apple, owning a smart search browser would be a significant strategic shift.
Official Word on Spending
Kevan Parekh, Apple’s CFO, provided some insight into how deeply Apple might be digging into its wallet. “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 expenses on data centers—previously a modest few billion per year—are expected to rise sharply. It’s a tangible sign that Apple no longer sees AI as a side hustle. It’s about to become front and center.
What Will It Mean for Users?
If you’re an iPhone user, the changes may not be visible overnight. But in the near future, AI may slightly alter the way you interact with your device. Whether it’s a smarter Siri, more intuitive apps, or a more intelligent search browser, Apple’s core experience is on the verge of being reshaped.
Privacy, always a hot-button issue for Apple, is still expected to be a cornerstone of whatever AI-friendly features they roll out. Right now, Apple uses its own silicon to process AI queries in a way that maintains existing privacy protections. That’s unlikely to change.
Community Skepticism and Tech Reactions
Reactions online have been mixed. Some longtime Apple watchers are hopeful the company will regain momentum by betting big on AI. Others express wariness about Apple trying to “buy its way in” without deep foundational changes to its virtual assistant tools.
It’s hard to know who’s right. Apple has a track record of sitting back, watching others stumble with early innovations, and then releasing a polished version later. Maybe that’s what’s happening now. Then again, if Siri continues to underwhelm or if Apple fails to deliver something usable with its additional spending, these efforts could feel like too little, too late.
Could a Big Deal Be Coming?
The openness to a major acquisition is a significant shift. If Apple ends up purchasing a mid-sized AI company—like Perplexity or something similar—it could reshape how the company approaches both search and data processing in its products.
That said, Apple is methodical. We’re unlikely to see a spontaneous, splashy purchase out of nowhere. It will happen only if it fits into an obvious technical roadmap and if integration is feasible without compromising security or stability.
Looking Ahead: What to Watch
So what’s next? While we won’t pretend to predict every move, here are a few likely developments to look for in the coming months:
- News of increased cloud infrastructure construction or ownership by Apple.
- Potential acquisition announcements, either small or headline-grabbing.
- Early teasers of an upgraded Siri or privacy-focused AI tools.
- Changes to iOS or Safari aimed at AI-enhanced functionality.
- More public statements from Apple about its position in AI compared to rivals.
The AI race used to seem like a game Apple wasn’t eager to play. But now, it’s clear they want in. The question, really, is how fast and how far they’re willing to go.
Final Thought
Perhaps Apple’s long game will pay off yet again. They’ve been quiet, cautious—and maybe a bit behind. But with their resources and platform reach, a few right moves could make a big difference. And just maybe, you and I will wake up one day soon to a Siri that finally deserves the spotlight.
