Apple CEO Hints at Big Acquisitions to Boost AI Ambitions

In Apple's latest earnings report, the tech giant posted impressive results, with revenue reaching $94 billion in the second quarter of 2025. This figure represents a 10% year-over-year increase and exceeded Wall Street's expectations by nearly $5 billion. The company's strong performance also boosted its net income to over $23 billion, resulting in earnings per share of $1.57, up 12% from the same period last year.

However, despite Apple's financial success, some investors have been critical of the company's approach to artificial intelligence (AI). While competitors like Google have made significant strides in developing advanced AI solutions, Apple's AI strategy has been perceived as lagging behind. This has led to concerns that the company may be missing out on a crucial opportunity in the rapidly evolving tech landscape.

During Apple's earnings conference call, CEO Tim Cook appeared to acknowledge these concerns. When asked about the prospects of "big M&A," Cook responded that the company is "very open to M&A that accelerates our road map." He further stated that Apple has already acquired around seven companies this year and is not "stuck on a certain size company." This suggests that the tech giant may be willing to make larger acquisitions to bolster its AI capabilities and catch up to its rivals.

With Apple's massive cash reserves, now totaling around $36 billion, the company has the financial resources to pursue significant acquisitions. This could potentially include a deal for a major AI player, such as the rumored interest in Perplexity, a prominent AI firm.