Apple's AI strategy unveiled through Tim Cook's remarks on the iPhone developer's AI approach
Apple has made a significant shift in its approach to artificial intelligence (AI) in 2025, moving from a slow, internal-development-focused strategy to a more aggressive and expansive one. This strategic pivot is marked by increased acquisitions, capital investments, and a strong focus on privacy-centric AI infrastructure.
Tim Cook, Apple's CEO, has referred to AI as "one of the most profound technologies of our lifetime." He confirmed that Apple is ramping up investment, including large spending on private cloud infrastructure to support its new AI platform called Apple Intelligence. The platform is expected to power revamped AI features like a more personalized Siri in 2026.
In the past year, Apple has acquired around seven small, specialized AI and machine learning companies. These acquisitions are aimed at plugging gaps in areas like natural language processing, on-device intelligence, and AI infrastructure. Notably, there are rumors of a potential $18 billion acquisition of Perplexity AI—an AI startup with a focus on search—which could help Apple lessen reliance on Google and boost AI capabilities in Safari and other services.
Apple is committing massive capital expenditures towards this AI transformation. In 2025 alone, the company spent $3.46 billion, with plans to grow this figure substantially, primarily driven by AI infrastructure. This investment includes building new U.S.-based data centers and expanding hardware development for private AI clouds, reinforcing Apple’s privacy-first approach and competitive edge.
Apple aims for a "Switzerland" position in AI: a neutral, secure platform controlling user trust and data privacy by emphasizing on-device AI over cloud dependency. This approach contrasts with many competitors who rely heavily on cloud-based AI.
This strategic shift reflects Apple’s attempt to address previous challenges, such as being criticized for a slow AI ramp-up and "losing the AI talent war." Apple is now combining internal R&D with external acquisition and partnerships to accelerate its AI roadmap.
At the WWDC 2025 event, Apple launched a new suite of AI features called Apple Intelligence. However, there were no updates for Siri. Apple is preparing for a future where AI isn't just helpful, but expected, as shown by their plans to revamp Siri and rethink user interactions across devices.
All Apple Intelligence features are opt-in, processed on-device or via Private Cloud Compute, and aligned with Apple's user protection ethos. Apple continues to prioritize privacy in its AI integration.
In conclusion, Apple's recent AI strategy contrasts its earlier cautious, internal-only stance by embracing external acquisitions and rapid ecosystem building, massive investments into AI infrastructure, and a clear strategic emphasis on privacy and on-device intelligence to redefine AI’s role in its products and services over the coming years. The competition in AI is intense, with multiple tech giants investing heavily in the field. Apple is not limiting itself by company size in acquisitions and is open to spending, hiring, and building faster to stay competitive.
- Tim Cook, Apple's CEO, acknowledged that AI is "one of the most profound technologies of our lifetime," signifying a shift towards integrating artificial intelligence more extensively into their products and services.
- In addition to ramping up internal development, Apple has been acquiring specialized AI and machine learning companies, such as the rumored $18 billion acquisition of Perplexity AI, to boost its AI capabilities and lessen reliance on third-party services like Google.
