AI Competition on Horizon for Apple, According to CEO Tim Cook
Apple has revealed plans to invest a substantial amount in artificial intelligence (AI) over the next few years, aiming to compete with tech giants like Microsoft and Google. The tech giant announced a $500 billion investment in AI between 2025 and 2029, focusing on areas such as AI infrastructure, chip manufacturing, and research and development (R&D) [1].
A significant part of this strategy involves building domestic AI infrastructure. Apple plans to construct a new 250,000-square-foot manufacturing facility in Houston, Texas, dedicated to producing servers for Apple’s AI efforts. This move signals a shift towards diversifying supply chains and strengthening U.S.-based AI capabilities [1].
Apple's commitment to AI doesn't stop there. The company has also announced a $600 billion commitment to U.S. investments over four years via its American Manufacturing Program (AMP). This initiative aims to expand Apple's supply chain and manufacturing footprint across multiple states, supporting the scaling of AI-related hardware production and broader technology manufacturing [3].
CEO Tim Cook emphasized that Apple is significantly growing its AI investments and reallocating personnel internally to accelerate development. Apple is embedding AI across devices and platforms as a core priority [2]. In addition, Apple has made seven acquisitions in 2025 to bolster its AI capabilities, though none were substantial in dollar terms. The company remains open to merger and acquisition opportunities to speed up its AI roadmap [2].
Despite relying on a hybrid model that leverages third-party capital investments, Apple's increasing capital expenditures and new manufacturing initiatives in the U.S. position the company to better compete with Microsoft and Google by building scalable AI infrastructure and advanced chips domestically [1][2][3].
In other news, Apple has highlighted its own proprietary server designs that boost energy efficiency and reduce water consumption in its 2024 Environmental Progress Report. However, the report does not provide any information about the potential cost or terms of the hypothetical Apple-Perplexity acquisition [4].
References:
[1] Apple to invest $500 billion in artificial intelligence, Bloomberg, 2025. [2] Apple's AI ambitions: Building domestic infrastructure, expanding investments, and boosting acquisitions, TechCrunch, 2025. [3] Apple's American Manufacturing Program: A $600 billion commitment to U.S. investments, Apple Newsroom, 2025. [4] Apple's 2024 Environmental Progress Report, Apple Newsroom, 2024.
Apple's strategy in the realm of technology and computing involves substantial investments in artificial-intelligence (AI), with a focus on AI infrastructure, chip manufacturing, research and development (R&D), and domestic AI infrastructure growth. The company is investing $500 billion in AI between 2025 and 2029, and has also committed $600 billion to U.S. investments over four years via its American Manufacturing Program (AMP), to bolster its AI capabilities and technology manufacturing.
