Tim Cook, CEO of Apple, said during the company’s fiscal fourth-quarter 2025 earnings call that it remains open to mergers and acquisitions to accelerate its progress in artificial intelligence. He shared this position in response to a question from an analyst who asked about Apple’s three-pronged approach to developing personalized artificial intelligence, which includes its own models, partnerships with large language model providers, and acquisitions. Cook replied that Apple is constantly monitoring the mergers and acquisitions market and is prepared to pursue deals if they help move its plans forward.
In an interview with CNBC reporter Steve Kovach, Cook mentioned that Apple plans to announce additional artificial intelligence partnerships, similar to its current partnership with OpenAI, which integrates ChatGPT into Siri and Apple Intelligence. "Our intention is to integrate with more people over time," Cook said. Cook also provided an update on the development of the next generation of AI-powered Siri, which is expected to launch in 2026. "We’re making good progress, and as we shared, we expect to release it next year," he said at the beginning of the call. This version of Siri is expected to introduce advanced features such as live translation and visual intelligence as part of the broader Apple Intelligence suite.
Infrastructure and Further Collaboration
Cook discussed how Apple is developing foundation AI models, deploying them on devices, and using them in its Private Cloud Compute system, which is designed for private AI processing in the cloud. "The manufacturing facility that produces servers for Apple Intelligence began production in Houston a few weeks ago, and we have a planned ramp-up for use in our data centers," he said. This system already handles a range of Siri requests, and Apple continues to expand it.
Regarding artificial intelligence, Cook suggested that the technology is influencing consumers’ decisions when choosing a new smartphone. "I would say that Apple Intelligence is a factor, and we are very optimistic that it will become an even bigger factor," he noted. Apple recently acquired Prompt AI, a startup specializing in computer vision, and integrated its 11-member team into its artificial intelligence division, strengthening features such as visual recognition in products including HomeKit and Vision Pro.
Revenue in Greater China, including Hong Kong and Taiwan, fell by 4% to $14.5 billion. However, Cook expects a return to growth this quarter thanks to the adoption of the iPhone 17. The company also faced an additional $1.1 billion in costs due to tariffs last quarter and expects $1.4 billion in the current quarter, with gross margin projected to be between 47% and 48%. "We maintained the prices we would have had without any tariffs and are simply absorbing the tariffs into gross margin," Cook explained. Actual gross margin reached 47.2%, exceeding expectations of 46.4%.
Sources: cnbc.com and techcrunch.com
