Apple Inc. may be poised to depart from its traditionally cautious approach to mergers and acquisitions as it seeks to bolster its capabilities in artificial intelligence. During the company’s Q3 2025 earnings call, CEO Tim Cook indicated a willingness to pursue larger-scale acquisitions, particularly those that could accelerate Apple’s AI roadmap.
Responding to a question from Citi analyst Atif Malik, Cook clarified that company size is not a constraint in Apple’s acquisition strategy. “We’re very open to M&A that accelerates our roadmap,” he stated. “We’re not stuck on a certain size company. We basically ask ourselves whether a company can help us accelerate a roadmap. If they do, then we are interested.”
This represents a notable shift for the Cupertino-based tech giant, which has historically steered clear of large acquisitions. Its largest purchase remains the $3 billion acquisition of Beats Electronics in 2014. However, recent reports suggest Apple has held internal discussions about acquiring Perplexity, a fast-growing AI search startup now valued at over $18 billion following a recent $1 billion funding round.
Cook revealed that Apple has already acquired seven companies in 2025, although not all are AI-focused. He did not provide details on any future transactions.
CFO Kevan Parekh added that Apple’s overall expenditure is expected to rise, primarily due to increased investments in AI infrastructure and development. “It’s not going to be exponential growth, but it is going to grow substantially,” Parekh noted.
Apple’s strategic pivot toward AI comes amid mounting pressure to keep pace with rivals such as Microsoft and Google, which have made significant advancements through offerings like Copilot and Gemini. Microsoft is projected to spend over $100 billion on AI this year, while Google’s AI investment is estimated at $85 billion. Apple, by contrast, has focused on building in-house solutions and has largely relied on third-party data centers.
Despite some skepticism — including a Morgan Stanley report dismissing the need for Apple to acquire an AI search startup — Cook’s comments suggest a more pragmatic and potentially aggressive approach going forward. Should the right opportunity arise, Apple appears ready to act decisively to maintain its competitive edge in the evolving AI landscape.
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