Apple now facilitates AI acquisitions of any scale
In a strategic move to bolster its AI capabilities, Apple is reportedly considering acquiring several AI-focused companies, including Perplexity AI, Cohere, Mistral, and Thinking Machines Lab. These firms are under evaluation by Apple as part of an effort to accelerate its AI roadmap.
CEO Tim Cook has expressed openness to large acquisitions, stating that Apple is "not stuck on a certain size company" and is "very open" to mergers and acquisitions (M&A) that can speed up its AI development. This shift in focus comes as Apple's rivals, such as Google, Meta, and Microsoft, have significantly larger AI investments.
The potential acquisitions are likely to target specialized, focused teams and technology startups that can contribute to device-dependent personalization, privacy-first AI features, and improvements to Siri and other user-facing AI services. Notably, Perplexity AI, an AI startup focused on information retrieval and question answering, has been publicly mentioned as a strong potential target.
Apple's business is currently thriving, despite not fully meeting its AI promises. The iPhone, Apple's most important product, saw a 13% year-over-year growth in the last quarter, reaching around $44.6 billion. This growth was achieved despite import tariffs from former US President Donald Trump, which cost Apple an additional $800 million in the last quarter, less than the previously expected $900 million. For the current quarter, Apple expects a burden of $1.1 billion due to these tariffs.
Despite the challenges posed by tariffs, Apple's revenue increased by 10% to around $94 billion (€82 billion), marking the strongest growth since 2021. The iPhone business, which analysts had expected to generate only around $40 billion, actually exceeded expectations.
In terms of acquisitions, Apple has already made several moves this year, acquiring around seven companies, some with a focus on AI, though none were large deals by dollar value. Apple's largest acquisition to date was the purchase of the music company Beats for $3 billion in 2014.
Despite the potential for large acquisitions, there is currently nothing to announce regarding any imminent deals. However, Cook emphasized that the company is not fixated on any particular size and is open to acquisitions of all sizes that can contribute to Apple's growth and development.
Meanwhile, Apple's main rival, Google, is integrating its AI software, Gemini, into Android smartphones, including those from Samsung. This move could potentially put pressure on Apple to step up its AI game and deliver on its AI promises to consumers.
However, Apple's CEO, Tim Cook, believes that innovative new devices will complement the iPhone, rather than making it less relevant. Cook's vision for the future of Apple suggests a company that is always looking to innovate and stay ahead of the curve, even in the face of competition and challenges.
- To expand its AI capabilities and stay competitive, Apple is considering investing in AI-focused companies like Perplexity AI, Cohere, Mistral, and Thinking Machines Lab that work on device-dependent personalization, privacy-first AI features, and improvements to Siri.
- Tim Cook, Apple's CEO, has expressed openness to large acquisitions, stating that the company is not constrained by size and is actively seeking mergers and acquisitions (M&A) that can help speed up AI development.
- Apple, a major player in both technology and finance, is not solely relying on AI for its growth; the company's revenue, in part generated by the successful iPhone, grew by 10% to around $94 billion (€82 billion) in the last quarter despite import tariffs and challenges posed by rivals like Google, Meta, and Microsoft with their larger AI investments.
