Apple Signals Major AI Push with Increased Data Center Investments and M&A Plans

Apple CEO Tim Cook announced that the tech giant is prepared to boost spending on artificial intelligence, including building more data centers and pursuing acquisitions, signaling a shift from its traditionally cautious approach to major investments. The move comes as Apple races to catch up with rivals Microsoft and Google, both investing tens of billions annually in AI infrastructure and products.

While Microsoft and Google have rapidly expanded their AI-powered chatbots and assistants, Apple has taken a more conservative route, relying partly on external data centers and focusing on in-house development for features like Siri. However, improvements to Siri have been delayed until next year, prompting questions about Apple’s competitive positioning in the fast-evolving AI market.

During Apple’s fiscal third-quarter earnings call, Cook revealed the company has already acquired seven smaller AI firms in 2025 and remains open to larger deals if they accelerate its AI roadmap. Apple’s biggest acquisition to date was Beats Electronics for $3 billion in 2014, but Cook hinted at a willingness to pursue bigger opportunities, including rumored interest in AI startup Perplexity.

Apple also confirmed plans to significantly increase spending on data centers, where it currently invests only a few billion dollars annually. CFO Kevan Parekh noted that while growth will not be “exponential,” investments will rise substantially, largely driven by AI initiatives.

The strategic shift comes as Apple faces potential revenue risks from a U.S. antitrust trial that could jeopardize its lucrative search engine deal with Google. By strengthening its AI capabilities and potentially revamping Safari with AI-powered search, Apple aims to secure its competitive edge in the next wave of AI innovation.