Apple Open to AI Acquisitions Amid Pressure to Catch Up with Rivals

Apple CEO Tim Cook says the company is open to considering AI acquisitions to accelerate its roadmap. Apple has acquired around seven companies this year and remains open to M&A. Cook's comments reflect a willingness to act, but Apple's past M&A history lags behind peers like Meta, Google, and Microsoft. Apple also remains a relatively modest spender on capital expenditures compared to other big tech firms.

Apple CEO Tim Cook has expressed openness to considering artificial intelligence (AI) acquisitions to accelerate the company's roadmap. In remarks made during Apple's third-quarter earnings call, Cook stated that Apple is "very open to M&A that accelerates our roadmap" [2]. This comes as Apple has already acquired around seven companies this year and continues to explore potential acquisitions to bolster its AI capabilities [2, 3].

Cook emphasized that Apple is not limited by the size of the companies it is willing to acquire, noting that the company is "not stuck on a certain size company" [2]. Instead, Apple is focusing on acquiring companies that can help it develop its AI offerings more quickly [2].

Apple's interest in AI acquisitions is driven by the growing pressure from Wall Street to catch up to its Silicon Valley peers, who have dedicated substantial resources to AI technology [2]. For instance, Google projects $85 billion in capital expenditures for its fiscal 2025, while Meta estimates up to $72 billion in annual capital expenditure spending [2].

Apple's AI strategy includes embedding AI features across its devices and platforms, and the company is rearranging staff internally to focus more on AI features [2]. However, Apple's past M&A history lags behind competitors such as Meta, Google, and Microsoft. Apple's largest acquisition to date remains the $3 billion Beats Electronics deal in 2014, compared to Meta's $19 billion acquisition of WhatsApp and Microsoft's $69 billion acquisition of Activision Blizzard [3].

While Apple has been a relatively modest spender on capital expenditures compared to other big tech firms, it reported $3.46 billion in capex during the June quarter, the highest since December 2022 [2]. This represents a significant increase from the $2.15 billion reported in the year-ago period [2].

Apple's focus on AI is evident in its third-quarter earnings report, which showed overall revenue growth of 10% year over year, largely driven by strong iPhone sales [4]. However, Cook warned of potential tariff-related costs and trimmed $10 billion off planned share buybacks to build a cash reserve [4].

In conclusion, Apple's openness to AI acquisitions and increased focus on AI development reflect the company's commitment to staying competitive in the rapidly evolving tech landscape. As Apple continues to explore potential acquisitions, investors and financial professionals should closely monitor the company's AI strategy and its impact on future earnings.

References:
[1] https://www.macrumors.com/2025/07/31/apple-open-to-ai-acquisition/
[2] https://www.cnbc.com/2025/07/31/tim-cook-apple-ai-acquisitions.html
[3] https://www.benzinga.com/markets/tech/25/07/46781140/tim-cook-says-apple-is-very-open-to-ai-acquisitions-amid-mounting-pressure-to-catch-up-with-google-meta-and-microsoft
[4] https://finimize.com/content/think-big-tech