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

Apple CEO Tim Cook stated that the company is open to considering AI acquisitions to accelerate its roadmap. Apple has acquired seven companies this year, and Cook said the company is not limited to a certain size of acquisition. Apple's past M&A history lags behind peers like Meta, Google, and Microsoft, which have spent tens of billions on AI acquisitions.

Apple CEO Tim Cook has indicated that the company is open to considering artificial intelligence (AI) acquisitions to accelerate its roadmap. This statement comes as Apple has already acquired around seven companies this year, with Cook emphasizing that the company is not limited to a certain size of acquisition. Apple's past M&A history lags behind peers like Meta, Google, and Microsoft, which have spent tens of billions on AI acquisitions [1, 2].

Cook's comments reflect a willingness to act, but Apple's past M&A history has been more modest compared to its competitors. Apple's largest acquisition to date remains the $3 billion Beats Electronics deal in 2014, while Meta's acquisition of WhatsApp cost $19 billion and Microsoft's acquisition of Activision Blizzard was valued at $69 billion [3].

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. 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. Apple's third-quarter earnings report showed overall revenue growth of 10% year over year, largely driven by strong iPhone sales. 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.ainvest.com/news/apple-open-ai-acquisitions-pressure-catch-rivals-2508/
[2] https://www.outlookbusiness.com/corporate/apple-eyes-bigger-ai-role-as-tim-cook-opens-door-to-major-ma-moves
[3] https://www.theverge.com/news/716790/apple-earnings-q3-2025-ai-tim-cook
[4] https://finimize.com/content/think-big-tech