AI, according to Apple CEO Tim Cook, is considered to be larger in scale than the internet, as he discussed the topic during a rare all-hands meeting.
In a recent all-hands meeting, Apple CEO Tim Cook outlined the company's strategy to catch up in the AI race. Cook emphasised that Apple aims to lead in AI by significantly expanding investments and being open to acquisitions that accelerate their AI roadmap.
Cook acknowledged that Apple has historically not been first in AI but emphasised that the company aims to create the "modern" or best versions of AI-powered products, much like it did with previous technologies such as the Mac, iPhone, and iPad. He signalled an urgent internal mandate to lead in AI, stating, "Apple must do this. Apple will do this. This is sort of ours to grab."
To accelerate progress, Apple is actively acquiring AI companies. In 2025 alone, the tech giant has purchased seven AI firms, and remains open to more mergers and acquisitions. There is speculation about Apple potentially acquiring Perplexity AI, which would be its largest acquisition to date, or partnering with other AI firms like Anthropic or OpenAI to bolster Siri’s capabilities, although no partnership has been finalised yet.
Cook also communicated that a significant number of people are being reallocated to focus on AI features. Apple is reportedly teaming up with Broadcom to develop its first AI chip, code-named Baltra, and expects to begin mass production of this chip by 2026.
The leadership overhaul following the fallout of LLM Siri has "supercharged" Apple's work in AI development. Craig Federighi, senior vice president of software engineering, stated that the main problem with the LLM Siri rollout was the use of a "hybrid architecture" that utilized two different software systems. Federighi is confident in the future of LLM Siri, claiming that the new "end-to-end revamp of Siri" will deliver "a much bigger upgrade than we envisioned."
Tim Cook admitted that Apple has fallen behind competitors in the AI race. However, he compared the AI revolution to be "as big or bigger" than the internet, and if Apple makes the right moves in developing and scaling its AI product offerings, Cook could potentially add AI to the list of technologies where Apple has become highly dominant.
Apple has reported better than expected revenue in its quarterly earnings report, primarily due to iPhone sales. The company has been working on integrating advanced AI into its product lineup for the past year under its Apple Intelligence initiative. Despite being a global leader in tech and consumer electronics, Apple is nowhere near the top when it comes to the AI race. Tim Cook told investors that Apple is planning to significantly increase its investments in AI and is open to acquisitions to do so.
In light of these developments, Apple is clearly making a strong push to compete effectively in the evolving AI landscape, by combining increased investment, embedding AI in its core products, and strategic M&A.
[1] Source: TechCrunch [2] Source: Bloomberg [3] Source: The Verge
- In an effort to dominate the future of AI, Apple, a global leader in tech and consumer electronics, is planning to significantly increase its investments and consider strategic acquisitions, following the lead of tech juggernauts like Google and Microsoft. (TechCrunch)
- Apple's acquisition spree in the AI sector shows no signs of slowing down, with the tech giant purchasing seven AI firms in 2025 alone and reportedly eyeing Perplexity AI for its largest acquisition to date. (The Verge)
- As part of its strategy to catch up in the AI race, Apple is reportedly partnering with Broadcom to develop its first AI chip, Baltra, and is actively reallocating resources to focus on AI features, hinting at a potential AI-powered revolution similar to the ones brought by the Mac, iPhone, and iPad. (Bloomberg)
