Why Is Apple Taking a Different Path in AI Spending?
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Why Is Apple Taking a Different Path in AI Spending?
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Apple is investing in artificial intelligence by combining its own chip-powered servers with external computing resources, supporting its Private Cloud Compute service. The company spent $12.72 billion on capital expenditures in fiscal 2025, a 35 percent increase from the previous year, but significantly less than Alphabet, Microsoft, Meta, and Amazon. Apple projects further capex increases to $14.3 billion, while continuing to classify some AI-related spending as operating expenses, which rose 11 percent due to research and development. Apple Intelligence, its AI suite, integrates features such as notification summaries and image generation, with some capabilities delayed until 2026. Consumer demand for iPhone 17 remains strong, and Apple expects AI features to play a growing role in future hardware sales.
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