Apple Doubles Down on AI Strategy with New Features, Investments, and Acquisitions
Apple is ramping up its artificial intelligence (AI) efforts, signaling a major shift in its long-term strategy to compete in the rapidly evolving AI landscape. During its Q3 2025 earnings call, Apple CEO Tim Cook emphasized the company’s deepening commitment to AI innovation.
“We see AI as one of the most profound technologies of our lifetime,” said Cook. “We are embedding it across our devices, platforms, and company-wide. Apple has always been about making advanced technologies easy to use and accessible and that’s at the heart of our AI strategy.”
Cook revealed that Apple is reallocating a significant number of employees to focus solely on artificial intelligence. He stressed that the company is “putting all of our energy behind it” and that Apple’s AI team is growing rapidly.
Increased AI investments are also contributing to higher capital expenditures (CapEx), although Apple noted that its hybrid investment model, relying partly on third parties,keeps its CapEx growth moderate.
Ahead of the earnings call, Apple disclosed in an interview with CNBC that it is actively pursuing mergers and acquisitions (M&A) to accelerate its AI roadmap. So far in 2025, Apple has acquired seven companies. While none were “huge” in value, Cook noted that acquisitions are happening roughly every few weeks.
This strategic M&A activity is aimed at expanding Apple Intelligence features and enhancing the company’s AI infrastructure.
While Apple has faced criticism for being late to the AI game, the company insists it’s taking a careful, quality-first approach. It has already launched over 20 Apple Intelligence features, including visual recognition tools, cleanup functions, and AI-assisted writing tools.
Upcoming features include:
- Live translation
- An AI-powered workout assistant
- More advanced personalization for Siri (expected in 2026)
Despite delays in some AI rollouts, most notably Siri’s major update, Cook assured investors that Apple is “making good progress” and will prioritize reliability over speed.
When asked whether AI-powered hardware like smart glasses could eventually replace the iPhone, Cook pushed back.
“It’s difficult to see a world where iPhone’s not living in it,” he said. “AI devices are likely to be complementary, not substitutes.”
While competitors like Meta advocate for immersive AI wearables, Apple appears focused on integrating AI into its existing product ecosystem rather than pivoting entirely.
Despite AI uncertainty, Apple delivered better-than-expected iPhone sales and record revenue for Q3 2025, which drove a spike in after-hours trading. The company’s strong performance suggests investor confidence in Apple’s long-term AI vision and product roadmap.
As Apple continues to evolve its AI ecosystem through internal development, external acquisitions, and cross-device integration, its strategy appears focused on user experience, functionality, and trust, rather than racing to be first.
