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20h ago

Apple Opens Door to Large AI Acquisitions to Accelerate Its Roadmap

Tim Cook said on its July earnings call that Apple will weigh acquisitions of any size as it ramps up AI capabilities.

Apple CEO Tim Cook speaks before the start of the Apple Worldwide Developers Conference at its headquarters on June 05, 2023 in Cupertino, California.
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Overview

  • During its July 31 Q3 earnings call, CEO Tim Cook said Apple is very open to M&A deals of any size that can speed its AI development.
  • The company has completed seven acquisitions so far this year, though most targets have been smaller and outside the AI search space.
  • Bloomberg reported Apple held internal talks with Perplexity AI, which recently raised $1 billion at a valuation exceeding $18 billion.
  • Apple is also reportedly evaluating Cohere, Mistral and Thinking Machines Lab as potential AI-focused acquisitions.
  • Despite boosting AI and cloud capital expenditures to $3.46 billion in Q2, Apple still trails Meta and Google, and its biggest deal remains 2014’s $3 billion purchase of Beats.