Apple has decided to significantly boost its investment in artificial intelligence to close the gap with rivals like Google and Microsoft. In 2025, Apple’s leadership revealed a big shift from its traditionally cautious spending toward an aggressive AI strategy, focusing on long-term growth and innovation.
Reasons Behind Investing More in AI
Until now, Apple was slower than competitors in adding AI features. Siri’s major upgrade has been delayed, and Apple still relies on partners like OpenAI for advanced AI tools. During its Q3 2025 earnings call, CEO Tim Cook said AI is one of the most profound technologies of our lifetime and emphasized that Apple must act fast.
With Google and Microsoft investing up to $100 billion in AI and data centers, Cook explained that Apple cannot fall behind. Apple made about seven small AI-related acquisitions in 2025, and it’s now open to larger deals if they align with the roadmap.
How Apple Is Planning to Build AI Power Internally
Apple will invest more in building its own data centers and designing custom AI hardware under its Apple Intelligence initiative. Instead of relying heavily on third-party cloud services, Apple is building private cloud infrastructure powered by Apple Silicon chips. This will help deliver faster, more secure AI features across its devices.
This infrastructure strategy supports Apple’s focus on privacy and efficient design while improving performance across iPhones, iPads, Macs, and other products.
What Kinds of AI Acquisitions Apple Is Considering
So far, Apple has acquired around seven smaller AI companies in 2025, mostly focused on areas like natural language processing, generative AI, and device-based intelligence. The company is now open to buying larger targets, even ones valued in the billions.
One rumored target is Perplexity AI, an AI-powered search company. An acquisition of this scale would reduce Apple’s dependence on Google as the default search engine on Safari and iPhones.
Tim Cook stressed that Apple is not limiting itself to small firms if a company can accelerate Apple’s AI roadmap, it will be considered.
How Apple’s AI Strategy Differs from Microsoft and Google
Apple’s AI approach emphasizes user privacy and on-device intelligence over massive cloud-based models. Its Apple Intelligence platform combines small on-device models with powerful server-side computing but all under Apple’s control, using end‑to‑end encryption.
In contrast, Microsoft and Google depend heavily on huge cloud AI models and open data collection. Apple’s model reduces risk and keeps data secure though it may slow development speed.
Risks and Challenges in Apple’s AI Ambitions
Despite growing investment, Apple still trails Microsoft and Google in building large language models and cloud-scale AI infrastructure. Some experts warn that without bold acquisitions or faster integration, Apple may struggle to catch up.
Additionally, legal issues around antitrust and competition with Google could limit Apple’s options. There are also startups building AI browsers and assistants that could disrupt Apple’s control of search and user interface.
Apple’s AI investment push marks a major shift in strategy. With stronger infrastructure plans, smart acquisitions, and privacy-first AI tools, the company hopes to redefine itself for the next tech era. Its success will depend on delivering compelling AI features while maintaining the trust and integration that users value.
Microsoft Profits Soar Thanks to Cloud and AI Growth 
Can OpenAI’s ChatGPT-Powered Browser Challenge Google? 
Microsoft Closes Pakistan Operations After 25 Years 
After 40 Years, Why Windows Is Killing the Blue Screen? 
Sergey Brin’s $700 Million Stock Gift to Philanthropies 
Trump Threatens 25% Tariff on iPhones and Other Smartphones