Apple is facing a problem in the field of artificial intelligence and hopes to solve it the traditional way: by throwing money at it. CEO Tim Cook admitted that AI development costs are mounting and that the company is actively acquiring expertise, but will that be enough to close the gap with competitors?
Article contents:
- Enhanced Siri delayed: Waiting until 2026
- AI costs: An admission of rising spending
- Acquisition strategy: Buying expertise to narrow the gap
- Cook’s vision: AI is “one of the most profound technologies of our time”
- What is Apple Intelligence?
- Challenges ahead: More than just spending money
- Conclusion: Apple’s race against time to catch up in AI
- Frequently asked questions
Enhanced Siri delayed: Waiting until 2026
The crown jewel of Apple’s AI efforts is Siri, as the voice assistant receives a massive AI overhaul. The company promised a “brand new era for Siri” at its Worldwide Developers Conference in June 2024. It painted a bright future for the technology, but more than a year later, the project has yet to launch following a major delay announced in March. Now, Tim Cook has confirmed that the project will not launch in 2025. He told analysts on Thursday: “We are making good progress on developing a more personalized Siri, and as we said before, we expect to roll out these features next year,” meaning in 2026.
AI costs: An admission of rising spending
The theme of AI spending kept recurring during the earnings call. Tim Cook seized the opportunity to say: “We are significantly increasing our investments. We did that during the fiscal quarter ending in June, and we will do it again in the fiscal quarter ending in September. I won’t put specific figures out at this point.” Later, an analyst pointed out that the company’s capital expenditures have grown significantly this year. The answer? Artificial intelligence. Kevan Parekh, Apple’s new CFO, said: “I would say a very large driver, as Tim talked about, is the fact that we are significantly increasing our investments in AI, and that is certainly a part of it.”
Acquisition strategy: Buying expertise to narrow the gap
One way Apple acquires technology and talent is by buying small companies. It is using this strategy for AI as well. That is how it originally got Siri technology—through an acquisition. And this practice continues. Cook told analysts: “We have acquired about seven companies this year. These are companies from all walks of life, and not all of them are geared toward artificial intelligence.” He added: “We are very open to mergers and acquisitions that accelerate our roadmap. We are not stuck on a particular company size, although the ones we have acquired so far this year are small in nature.”
Cook’s comment that Apple is “very open to mergers and acquisitions” is likely to reignite speculation that Apple wants to acquire the AI-powered search startup Perplexity AI.
Cook’s vision: AI is “one of the most profound technologies of our time”
Tim Cook is trying to put to rest questions about whether Apple realizes the crucial role AI will play in the future. He said on Thursday: “The way we look at artificial intelligence is that it is one of the most profound technologies of our time, and I believe it will impact all devices in an important way.” This statement is intended to reassure investors that Apple is not taking this technological shift lightly.
What is Apple Intelligence?
Despite the delay of the enhanced Siri, Apple Intelligence is a broader effort. Many features have already been released, such as Writing Tools, which help rewrite and summarize text. More are on the way, integrated into iOS 26 in the fall. These features aim to deliver useful, practical AI deeply embedded in the user experience, with a heavy focus on privacy by processing much of the data on the device itself.
Challenges ahead: More than just spending money
Despite massive funds, Apple faces significant challenges. First, catching up in large language models requires more than just money; it requires an open research culture and massive data, two areas where competitors like Google have been bolder. Second, Apple must balance its AI ambitions with its strict commitment to privacy, a difficult challenge. Finally, the Siri delay puts it on the defensive, where it will have to prove that the wait was worth it.
Conclusion: Apple’s race against time to catch up in AI
Apple is throwing all its financial weight behind its AI efforts, admitting it cannot afford to fall behind. While money can buy companies, talent, and data centers, the bigger question remains: Can it buy time? With competitors moving quickly, Apple finds itself in an unfamiliar race, one that may define its technological dominance for the coming decade.
Frequently asked questions
When will the AI-enhanced Siri launch?
According to Tim Cook, the new Siri features are expected to launch in 2026, following a delay from the original timeline.
Is Apple buying AI companies?
Yes, Tim Cook confirmed that Apple has acquired about seven companies this year and is open to further acquisitions to accelerate its AI development.
Why is Apple spending so much on AI?
Because it realizes that AI is the next foundational technology and needs to catch up with competitors who have made significant progress. Spending includes developing models, building data centers, and acquiring companies.
