Apple is ready to catch up in the AI market, CEO Tim Cook says

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Apple Intelligence could soon get a boost

Apple Intelligence on iOS
(Image credit: Apple)
  • Apple's CFO said data center spend could "grow substantially"
  • The company posted a 10% rise in quarterly earnings
  • It's also staying on top of its sustainability credentials

Apple has alluded to wanting to increase spending on artificial intelligence and data centers to catch up with rivals after early Apple Intelligence features have left users wanting more in the shadow of Microsoft and Google systems.

CEO Tim Cook expressed an interest in acquiring larger AI companies after the company bought out seven smaller companies in 2025, marking a shift from the iPhone maker's typical strategy of low-key acquisitions.

The news came as Apple announced its third-quarter financial results, revealing a 10% year-over-year quarterly revenue of $94.0 billion.

Apple plans to invest more in Apple Intelligence

Speaking about double-digit growth across iPhone, Mac, and Services, Cook said: "We were excited to introduce a beautiful new software design that extends across all of our platforms, and we announced even more great Apple Intelligence features."

The company has fallen behind the likes of Microsoft and Google, who are spending around $85-100 billion annually on AI and data centers. Currently, Apple mostly relies on third-party data centers and has built a handful of AI tools in house, however users have been left facing disappointing launches and delays.

All of this could be about to change if Bloomberg reporting suggesting that Apple could buy Perplexity turns out to be true.

Speaking about data center spend on the earnings call, CFO Kevan Parekh explained: "It's not going to be exponential growth, but it is going to grow substantially."

However, Apple's cautious approach has proven valuable in terms of the company's environmental impact, where other companies have seen significant impacts from rapid data center expansion. In its 2024 Environmental Progress Report, the company highlighted its own proprietary server designs, which have boosted energy efficiency and reduced water consumption – they've also been powered by renewable energy since 2018.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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