Tim Cook Addresses Apple's AI Woes, Promises Investment in AI Revolution

Apple CEO Tim Cook held a company-wide meeting to address concerns about the company's lag in artificial intelligence (AI). Cook emphasized the importance of AI and promised to invest in it, stating that "Apple must do this. Apple will do this. This is sort of ours to grab." He also addressed setbacks in the Siri team and internal discussions about acquiring AI search startup Perplexity. Cook reassured employees that Apple has a history of innovating in new categories, citing examples such as the Mac, iPhone, and iPad.

Apple CEO Tim Cook held a company-wide meeting to address concerns about the company's lag in artificial intelligence (AI). Cook emphasized the importance of AI and promised to invest in it, stating that "Apple must do this. Apple will do this. This is sort of ours to grab." He also addressed setbacks in the Siri team and internal discussions about acquiring AI search startup Perplexity. Cook reassured employees that Apple has a history of innovating in new categories, citing examples such as the Mac, iPhone, and iPad [1].

Cook highlighted Apple's third-quarter earnings, which showed robust performance with revenue reaching $94 billion, a 10% year-over-year increase [2]. Despite the positive results, analysts had mixed reactions, with some noting Apple's lag in AI development and the impact of tariffs on costs [2, 4]. Apple reported a financial hit of $800 million from tariffs in the third quarter, with costs expected to increase to $1.1 billion in the September quarter [4].

Cook stated that Apple is "significantly growing" its AI investments and remains "very open" to acquisitions that could accelerate its AI roadmap. The company has already acquired about seven companies this year and is reallocating resources to focus on AI features. Cook confirmed that Apple is "reallocating a fair number of people to focus on AI features within the company" [1].

Apple's capital expenditures reached $3.46 billion in the June quarter, up from $2.15 billion the previous year, though still modest compared to competitors like Google's projected $85 billion for fiscal 2025, while Meta estimates up to $72 billion in annual spending [1]. Apple is also planning to spend more on data centres, an area where it typically spends only a few billion dollars per year [3].

Cook's comments signal Apple's determination to close the AI gap with tech giants who have invested tens of billions in the technology. "We have a great team, and we're putting all of our energy behind it," he concluded, reinforcing Apple's commitment to AI leadership despite its delayed entry into the market [1].

References:
[1] https://timesofindia.indiatimes.com/technology/tech-news/tim-cook-says-apple-acquired-over-half-a-dozen-ai-companies-this-year-and-is-very-open-to-buy-even-more/articleshow/123034528.cms
[2] https://www.ainvest.com/news/apple-q3-results-stocks-rise-mixed-analyst-reactions-2508/
[3] https://m.economictimes.com/tech/artificial-intelligence/ceo-tim-cook-says-apple-ready-to-open-its-wallet-to-catch-up-in-ai/articleshow/123032810.cms
[4] https://gizmodo.com/apples-tim-cook-talks-trump-tariffs-and-ai-2000637963