Apple Eyes Bigger AI Push as It Trails Microsoft and Google

Picture Credit: Investopedia

Apple is signaling a shift in its artificial intelligence strategy, aiming to ramp up spending on AI and data centers after lagging behind Microsoft and Google in the AI race. CEO Tim Cook hinted at acquiring larger AI companies—an unusual move for Apple, which has traditionally favored smaller, low-profile acquisitions. In 2025 alone, Apple bought seven AI-related firms.

The announcement came alongside Apple’s Q3 results, showing a 10% year-over-year revenue increase to $94 billion, fueled by double-digit growth in iPhone, Mac, and Services. Cook touted new Apple Intelligence features and a refreshed software design, but early launches have faced criticism for delays and underwhelming capabilities compared to rivals.

Microsoft and Google are pouring $85–$100 billion annually into AI and data centers, while Apple has largely relied on third-party infrastructure and limited in-house tools. That could soon change, especially if reports of a potential acquisition of AI search startup Perplexity prove true. CFO Kevan Parekh said data center investment will grow “substantially,” though not exponentially.

Despite moving cautiously, Apple has emphasized sustainability, highlighting proprietary server designs that improve energy efficiency and cut water use, all powered by renewable energy since 2018. This balance between growth and environmental responsibility could define Apple’s next chapter in AI.