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Apple Accelerates AI Investments to Catch Up in Tech Race

Apple’s Q3 earnings call revealed a major AI push: CEO Tim Cook says the company is embedding intelligence across devices, reallocating staff, boosting CapEx, and acquiring startups every few weeks. Despite criticism over missed AI deadlines, Apple has launched 20+ features and teases live translation, a workout buddy, and upgraded Siri.

Published July 31, 2025 at 06:09 PM EDT in Artificial Intelligence (AI)

Apple is signaling a new level of urgency in the artificial intelligence race. On its Q3 2025 earnings call, CEO Tim Cook described AI as one of the most profound technologies of our lifetime and vowed to embed it across every device and platform.

Cook revealed that Apple is reallocating a significant number of engineers and researchers to AI projects. “We have a great, great team and we’re putting all of our energy behind it,” he said, underlining the shift in priorities.

The intensified focus is reflected in rising capital expenditures. Apple’s CapEx is up year-to-date, though the company maintains a hybrid investment model by partnering with third parties for infrastructure to avoid exponential spending spikes.

Apple is also open to strategic M&A. In 2025 alone, it acquired seven AI-focused companies—small in price tag but potent in talent and technology—and continues to close one acquisition every few weeks.

The company has faced criticism for delayed AI rollouts and a demo of an enhanced Siri that wasn’t consumer-ready. Apple defends its deliberate pace, arguing that rushing out underperforming features would undermine trust.

  • Launched over 20 Apple Intelligence features, including visual intelligence, cleanup tools, and writing assistants
  • Delivered on-device suggestions, context-aware photo editing, and smarter email drafting

Looking ahead, Apple plans to roll out live translation, an AI-powered workout companion, and more advanced Siri personalization—though the Siri overhaul is now slated for 2026.

  • Live translation for seamless multilingual conversations
  • AI workout buddy to guide routines and track progress

On the hardware front, Cook dismissed the notion that AI glasses or headsets will replace the iPhone. Instead, he sees new form factors complementing, not substituting, Apple’s flagship device.

Despite the AI pivot, Apple delivered better-than-expected iPhone sales and record revenue in Q3, sending its stock higher in after-hours trading. The company’s cautious but comprehensive approach may pay dividends as AI competition heats up.

What This Means for Tech Leaders

Apple’s balanced mix of in-house R&D, strategic acquisitions, and measured rollout offers a blueprint for organizations planning their own AI transformations. The emphasis on robust, user-ready releases underscores the importance of quality over speed.

As AI integration accelerates across industries, businesses must align talent, infrastructure, and acquisition strategies. Leveraging expert insights can transform cautious planning into competitive advantage.

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