Apple CEO Tim Cook confirmed the company is open to AI-focused acquisitions and has significantly increased its internal investments in AI, even as Siri’s revamp faces delays and geopolitical challenges loom. (Source: Image by RR)

CEO Tim Cook Balances Record Revenue With AI Strategy Overhaul

Apple CEO Tim Cook announced that the company is “open” to mergers and acquisitions as it ramps up its AI investments, signaling a shift in strategy as Apple attempts to catch up in the AI race. Speaking alongside the release of Apple’s Q3 earnings, Cook emphasized AI integration across Apple’s platforms and hinted at potential partnerships or purchases to accelerate development. Reports have previously linked Apple to AI players such as OpenAI, Anthropic, and even the search startup Perplexity, amid criticism that Apple Intelligence lags behind rivals.

Although Apple has teased a significantly improved Siri powered by large language models, progress has reportedly been slow. SVP Craig Federighi recently admitted that the system wasn’t yet reliable enough for release, contributing to delays. Internally, Apple has shuffled leadership and reallocated staff to AI efforts, appointing Vision Pro lead Mike Rockwell to oversee AI and Siri in March. As noted in theverge.com, Cook, confirmed the company is making “good progress” on a more personalized version of Siri and is embedding AI into hardware and software products company-wide.

Despite facing AI-related delays and competition from companies like Meta, Apple posted strong quarterly earnings. The company brought in $94 billion from April to June—a 10% increase year over year. iPhone sales grew 13% to $44.6 billion, Mac revenue hit $8.1 billion, and Apple’s services sector, including Apple TV+, iCloud, and Music, saw a record $27.4 billion. The Mac boost likely stems from the release of a new MacBook Air in March, while services continue to grow amid user adoption.

Apple still faces potential geopolitical and financial risks. In May, the company warned that tariffs under President Trump could cost it at least $900 million in a single quarter. Trump has threatened Apple with a 25% tariff unless it moves more manufacturing to the U.S., despite Apple’s recent push to diversify production into India. Looking ahead, Apple’s iPhone 17 and iOS 26, featuring the controversial “Liquid Glass” design language, are expected to debut in September.

read more at theverge.com