Tim Cook Says Apple Is ‘Very Open’ To AI Acquisitions Amid Mounting Pressure To Catch Up With Google, Meta And Microsoft – Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

On Thursday, Apple Inc. AAPL CEO Tim Cook said the company is open to considering artificial intelligence acquisitions.

During Apple’s third-quarter earnings call, Citi analyst Atas Malik asked whether the company would accelerate its AI roadmap through major mergers and acquisitions.

Check out the current price of AAPL stock here.

Cook responded that Apple has already acquired around seven companies this year and remains “very open to M&A that accelerates our roadmap.”

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Apple Is Open To M&A, Says Tim Cook

“We are not stuck on a certain size company,” Cook said. “Although the ones that we have acquired thus far this year are small in nature… we basically ask ourselves whether a company can help us accelerate a roadmap. If they do, then we’re interested.”

See Also: Apple Faces 18-Month Deadline To Deliver On AI, Says Analyst

Apple’s M&A History Lags Behind Meta, Google

While Cook’s comments reflect a willingness to act, Apple’s past tells a different story. Its largest-ever acquisition remains the $3 billion Beats Electronics deal in 2014.

By contrast, peers like Facebook-parent Meta Platforms, Inc. META acquired WhatsApp for $19 billion, Alphabet Inc.’s GOOG GOOGL Google bought Motorola Mobility for $12.5 billion and Microsoft Corporation MSFT spent a staggering $69 billion on Activision Blizzard.

Apple Trails Rivals Like Meta, Microsoft In AI Spending

Apple also remains a relatively modest spender on capital expenditures compared to other big tech firms. In the June quarter, it reported $3.46 billion in capex—its highest since December 2022—up from $2.15 billion a year earlier. At that pace, annual spending would total around $14 billion, according to CNBC.

In comparison, Meta, Google and Microsoft have spent tens of billions to dominate the AI arms race. Meta alone projects up to $72 billion in annual CapEx, while Google expects $85 billion.

Apple Reportedly Eyes Perplexity AI, Mistral And Others

Meanwhile, it has been reported that Apple is evaluating Perplexity AI as a possible acquisition. Apple has also reportedly looked at other smaller AI companies like Cohere, Mistral and Thinking Machines Lab.

Apple Beats Earnings Expectations In Q3 Revenue

Apple posted fiscal third-quarter revenue of $94 billion, surpassing expectations of $89.04 billion. The company closed the quarter with $36.27 billion in cash and cash equivalents.

Price Action: Apple shares rose 2.42% in after-hours trading, according to Benzinga Pro.

Benzinga’s Edge Stock Rankings show that AAPL continues to display strong upward momentum in the short and medium term, though it trends downward over the long term. More detailed performance insights are available here.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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