Tech mogul Tim Cook is reportedly set on making strategic investments in the realms of Artificial Intelligence (AI) and technology, with plans for further acquisitions on the horizon.

Tech mogul Tim Cook is reportedly set on making strategic investments in the realms of Artificial Intelligence (AI) and technology, with plans for further acquisitions on the horizon.

Apple has made a strategic shift towards closing innovation gaps with competitors in the field of artificial intelligence (AI), as evidenced by its series of acquisitions this year. The tech giant reported a third-quarter revenue of $94 billion (approximately €81 billion), surpassing Wall Street estimates, and marking the highest revenue reported by the company so far.

In the third quarter, Apple beat earnings per share estimates, reporting $1.57 (approximately €1.35) compared to estimated $1.43 (approximately €1.23). This aggressive push towards AI is a departure from Apple’s historically modest acquisition strategy, which has typically involved smaller deals compared to its Big Tech peers.

Notably, Apple has acquired around seven small startups this year to accelerate its AI roadmap. While the company has not publicly disclosed the specific names of all these companies, the acquisition of the video game studio RAC7 in May for an undisclosed amount is one such example.

The potential acquisition of Perplexity AI, a major AI startup valued at $14 billion, would surpass Apple's previous largest purchase, Beats Electronics at $3 billion in 2014, if completed. This move signals Apple may be willing to make much bigger moves going forward to catch up in AI innovation.

In the realm of AI, Apple introduced its AI platform, Apple Intelligence, last year. The company has been active in acquiring startups from various sectors, including global fintech, augmented reality, and AI, in recent years.

Craig Federighi, Senior Vice President of Software Engineering, stated at the company's Worldwide Developers Conference that Apple's work on Siri "needs more time." The company's acquisitions this year, along with the potential Perplexity AI deal, are indicative of Apple's commitment to improving and accelerating its AI capabilities.

Apple's shares rose 2.4% after-hours on Thursday, despite losing 17% in value this year due to concerns about lack of innovation in AI and potential tariffs affecting iPhone sales. The positive market sentiment suggests investors' confidence in Apple's strategic shift towards AI.

Meanwhile, other Big Tech companies have made larger multi-billion dollar purchases. For example, Meta acquired WhatsApp for $19 billion, Google purchased Motorola Mobility for $12.5 billion, and Microsoft spent about $6 billion on acquisitions. However, Apple's latest eight- to nine-figure deals are relatively small compared to those of its peers.

In May, OpenAI announced the acquisition of the AI startup io, founded by iPhone designer Jony Ive, for around $6.4 billion (approximately €5.5 billion). This acquisition, while not by Apple, further underscores the tech industry's focus on AI and the competitive landscape.

Apple CEO Tim Cook has expressed interest in corporate acquisitions, and the company remains open to mergers and acquisitions that can accelerate its roadmap. As Apple continues to invest in AI, it will be interesting to see how the company's strategy evolves and what future acquisitions may hold.

[1] Apple Acquires Seven AI Startups to Accelerate Its Roadmap [2] Apple Considers Acquiring Perplexity AI for $14 Billion [3] Apple's Potential Perplexity AI Deal Signals a Shift Towards Bigger Moves [4] Apple's Acquisition Strategy: Less Aggressive than Peers, but Pursuing AI Development

• What's happening now with Apple's business in the field of technology and finance? They are making significant moves in the realm of artificial intelligence (AI) by acquisitions, such as the potential purchase of Perplexity AI, worth $14 billion, which could be a departure from their usual smaller deals and a sign of their commitment to AI capabilities.
• The tech giant has been active in acquiring startups from various sectors, including global fintech and AI, as part of their effort to catch up in AI innovation, as seen in their recent acquisitions of seven AI startups and the potential Perplexity AI deal.

Read also: