Apple Signals Major AI Push With Bigger Data Centre Spending And Potential Acquisitions

Apple is preparing to significantly ramp up its artificial intelligence ambitions, with CEO Tim Cook indicating the company is willing to spend more on data centres and even pursue major acquisitions. The move marks a shift from Apple’s traditionally cautious spending habits, as it seeks to close the gap with rivals Microsoft and Google in the AI race. While Apple has relied heavily on in-house AI development and outside data centre providers, slower progress—particularly with improvements to Siri—has prompted a more aggressive investment approach.

Apple’s New AI Strategy

Willingness to Make Bigger Deals

• Apple has acquired seven small companies so far in 2025.
• Tim Cook signalled openness to buying larger firms to accelerate AI product roadmaps.
• Historically, Apple’s largest deal was the $3 billion purchase of Beats Electronics in 2014, followed by a $1 billion acquisition of Intel’s modem chip business.

Increased Data Centre Spending

• Apple will expand its annual data centre investment beyond its typical few billion dollars.
• CFO Kevan Parekh said growth will be “substantial” but not “exponential.”
• The company is using custom chip designs to process AI requests while maintaining strong privacy protections.

Competitive Pressure

• Apple trails Microsoft and Google in launching widely adopted AI tools such as chatbots.
• Google’s default search deal with Apple—worth tens of billions annually—faces potential disruption from a U.S. antitrust case.
• Startups like Perplexity are exploring partnerships with phone makers to replace Google’s search dominance.

Possible Acquisition Targets and AI Integration

• Bloomberg has reported Apple executives discussed a possible purchase of AI search startup Perplexity, though this remains unconfirmed.
• Apple is considering reshaping Safari with AI-powered search capabilities.
• Despite a high-profile partnership with OpenAI for certain iPhone features, Apple has delayed key Siri enhancements until next year.

Market Reaction and Outlook

• Apple shares increased by 1.7% in pre-market trading following their AI spending announcement
• Their more aggressive investment approach and opening up access to AI markets while capitalising on strong privacy and device integration credentials.

Conclusion

Apple’s recent investments and acquisitions in AI reflect their determination to compete with tech giants who already invest in artificial intelligence. Plans such as expanding data centre capacity, exploring AI-powered search in Safari, and potentially seeking major acquisitions demonstrate this trend – moves which could significantly alter Apple’s presence within global AI landscape if executed successfully.