Facing questions on AI strategy, Tim Cook says Apple is 'very open' to acquisitions

Core Insights - Apple's third-quarter earnings report indicated a 10% year-over-year revenue growth, highlighting the company's overall financial health [1] - CEO Tim Cook announced plans for significant increases in investments in AI technology, emphasizing the company's commitment to enhancing its AI capabilities [2] - Apple is open to mergers and acquisitions (M&A) of any size to accelerate its AI roadmap, having acquired around seven companies this year, though not all focused on AI [3] Investment Strategy - Tim Cook stated that Apple is looking to significantly grow its investments in AI, responding to pressure from Wall Street to keep pace with competitors [2][4] - The company has historically not been a major spender on capital expenditures, reporting $3.46 billion in the June quarter, a rise from $2.15 billion year-over-year [5] - If Apple maintained its current spending level, it would amount to approximately $14 billion annually, which is significantly lower than competitors like Google, Meta, and Microsoft [5][6] Competitive Landscape - Apple faces increasing pressure to enhance its AI infrastructure, as competitors have committed tens of billions of dollars to similar initiatives [4] - In comparison, Google is projecting $85 billion, Meta up to $72 billion, and Microsoft $30 billion in capital expenditures, showcasing the competitive spending landscape in the tech industry [6]