Apple on Thursday signaled its growing commitment to catching up in the AI race. CEO Tim Cook emphasized the company’s focus on AI during the Q3 2025 earnings call with investors, stating, “We see AI as one of the most profound technologies of our lifetime. We are embedding it across our devices, platforms, and the entire company while significantly increasing our investments.” He added that Apple’s approach to AI aligns with its long-standing mission of making advanced technologies easy to use and accessible for everyone.
Cook revealed that Apple is reallocating a substantial number of employees to focus on AI development. “We have a great team, and we’re putting all of our energy behind it,” he said. The company also noted that AI investments are driving higher capital expenditures, though Apple maintains a hybrid model that relies on third parties for some capital investments, preventing exponential growth in spending.
Prior to the earnings call, Apple shared in an interview that it is open to mergers and acquisitions to accelerate its AI roadmap. Cook mentioned that the company has already acquired seven smaller firms this year, with acquisitions happening roughly every few weeks.
Despite criticism that Apple was caught off guard by the AI boom, the company has defended its cautious approach. Executives argue that rushing unfinished products to market would be a mistake. So far, Apple has released over 20 AI-powered features, including visual intelligence tools, cleanup functions, and writing aids. Later this year, it plans to introduce live translation and an AI-powered workout assistant. However, improvements to a more personalized Siri have been delayed until 2026.
Cook also addressed speculation about AI disrupting the iPhone business, particularly after Meta CEO Mark Zuckerberg suggested AI glasses could become the dominant form of interaction. Cook dismissed the idea that iPhones would become obsolete, stating, “It’s difficult to see a world where iPhone’s not living in it. AI devices are likely to be complementary, not replacements.”
Apple reported better-than-expected iPhone sales and record revenue in Q3, leading to a stock surge in after-hours trading. The company declined to comment on which AI technologies it believes will become commoditized, citing competitive reasons.
This article was updated with additional details from the earnings call.