Apple CEO Tim Cook announced on the Q3 2025 earnings call that the company will “significantly” increase its investments in AI.
Cook described AI as “one of the most profound technologies of our lifetime.” He explained that Apple is integrating AI across its devices, platforms, and operations.
“We are reallocating a fair number of people,” Cook said. “We have a great, great team and we’re putting all of our energy behind it.”
AI Expenditure
Apple’s AI efforts are reflected in its capital expenditure. The company noted a year-to-date increase in spending, driven in part by AI development.
However, Apple continues to follow a hybrid model, relying on both internal teams and third-party infrastructure. This strategy helps control costs while maintaining flexibility.
Internally, Apple is shifting staff to focus on AI projects.
Mergers and Acquisitions
In addition to internal investment, Apple is open to strategic acquisitions. The company confirmed it has acquired seven businesses this year.
While none were large in terms of financial value, each deal supports Apple’s AI strategy. Cook noted that Apple now acquires a company “every few weeks.”
While the company has not named the startups, each purchase adds technical expertise or proprietary tools to its portfolio.
Product Delays
Apple has faced criticism for its slower pace; some observers claim the company was unprepared for the rapid rise of generative AI.
Others pointed to delays in rolling out key AI features, including improvements to Siri, as well as failed launches. Still, Cook defended the company’s approach.
He argued that releasing unfinished or unreliable features would harm the brand. “Apple doesn’t need to be first,” he said. “We need to get it right.”
Apple AI
Despite the setbacks, Apple has already released over 20 AI tools: Visual Intelligence, which can identify content in images and videos, and Cleanup Tools for removing unwanted elements in photos.
It also released Writing Assistance that provides grammar and content suggestions. More features are still on the way.
Apple plans to introduce live translation and an AI fitness assistant later this year. However, a more advanced version of Siri has been delayed until 2026.
Cook assured investors that development is progressing well. “We’re making good progress,” he said during the call.
The iPhone
Some tech leaders have predicted progress toward wearable AI devices. Meta CEO Mark Zuckerberg recently suggested that AI glasses could be the future, replacing smartphones.
However, Cook disagrees. “It’s difficult to see a world where iPhone’s not living in it,” he said. Still, he acknowledged that new AI devices may emerge.
However, he emphasized that such devices would complement the iPhone—not replace it.
Apple’s AI Strategy
Cook declined to specify which AI technologies Apple believes will become standard across the industry. “That would give away part of our strategy,” he explained.
Apple has always kept product details under tight control, and its AI strategy is no different.
Earnings
Despite the ongoing transition, Apple continues to deliver strong financial results. The company reported better-than-expected iPhone sales and record revenue in Q3 2025.
This performance boosted the stock in after-hours trading. Investors appear to support Apple’s AI efforts, even as it takes a more measured approach than rivals.
