Apple CEO Tim Cook announced on Thursday that the iPhone maker is prepared to increase spending to compete in artificial intelligence, potentially by constructing additional data centers or acquiring a major AI player, marking a shift from its traditional fiscal frugality.

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	Forwarded this email? Subscribe here for more Apple is ready to open its wallet to catch up in AI – CEO Cook MacDailyNews Aug 4   READ IN APP   Apple CEO Tim Cook announced on Thursday that the iPhone maker is prepared to increase spending to compete in artificial intelligence, potentially by constructing additional data centers or acquiring a major AI player, marking a shift from its traditional fiscal frugality. Stephen Nellis for Reuters: ‎ Apple has struggled to keep pace with rivals such as Microsoft and Alphabet’s Google, both of which have attracted hundreds of millions of users to their AI-powered chatbots and assistants. That growth has come at a steep cost, however, with Google planning to spend $85 billion over the next year and Microsoft on track to spend more than $100 billion, mostly on data centers. Apple, in contrast, has leaned on outside data center providers to handle some of its cloud computing work, and despite a high-profile partnership with ChatGPT creator OpenAI for certain iPhone features, has tried to grow much of its AI technology in-house, including improvements to its Siri virtual assistant. The results have been rocky, with the company delaying its Siri improvements until next year. During a conference call after Apple’s fiscal third-quarter results, analysts noted that Apple has historically not done large deals and asked whether it might take a different approach to pursue its AI ambitions. “We’re very open to M&A that accelerates our roadmap. We are not stuck on a certain size company, although the ones that we have acquired thus far this year are small in nature,” Cook said. “We basically ask ourselves whether a company can help us accelerate a roadmap, and if they do, then we’re interested.” Apple also said on Thursday it plans to spend more on data centers, an area where it typically spends only a few billion dollars per year… Kevan Parekh, Apple’s chief financial officer, did not give specific spending targets but said outlays would rise. “It’s not going to be exponential growth, but it is going to grow substantially,” Parekh said during the conference call. “A lot of that’s a function of the investments we’re making in AI.” ‎ MacDailyNews Take: None of this should be surprising to regular readers of MacDailyNews as we told you even before WWDC24, that Apple’s initial GenAI moves would be vaporware designed to buy time for “data center buildouts and investments that will be required.” Apple was caught flat-footed, due to a lack of vision on the part of leadership… So, the only solution is to partner with a [Google, OpenAI, Baidu, etc.] for the real GenAI stuff while pretending (marketing) really hard that some on-device AI Apple has whipped up in a few months is “insanely great Apple innovation” that’s at the heart of Apple’s 2024’s AI announcements when it’s really just an adjunct… Watch Apple make a big show of its on-device AI at WWDC and run many ads touting it from June onwards. Apple hopes to buy time for the data center buildouts and investments that will be required for them to someday own their own AI technology and not have to license it from the likes of [Google, OpenAI, Baidu, etc.]. This is what happens after a decade plus with a caretaker CEO at the helm after he hits the last page of his iteration playbook, yet attempts to stay in the game for too long. – MacDailyNews, April 1, 2024 ‎ Please help support MacDailyNews — and enjoy subscriber-only articles, comments, chat, and more — by subscribing to our Substack: macdailynews.substack.com. Thank you! Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Apple is ready to open its wallet to catch up in AI – CEO Cook appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription. Upgrade to paid   Like Comment Restack   © 2025 MacDailyNews 548 Market Street PMB 72296, San Francisco, CA 94104 Unsubscribe