Apple CEO Tim Cook recently held a rare all-hands meeting at the Steve Jobs Theatre on 1 August 2025, where he called on employees to embrace artificial intelligence as a strategic priority.
Although no pricing or product announcements were made during the meeting, Cook positioned AI as a transformational shift for the company, describing it as “ours to grab.”
Tim Cook: “Apple must do this. Apple will do this.”
During the hour-long internal session, Cook acknowledged that Apple had entered many tech categories late—including PCs, MP3 players, smartphones, and tablets—but eventually helped define the modern standard in each.
He encouraged Apple’s workforce to integrate AI into all aspects of their work, from product development to operational efficiency.
He described the AI era as potentially “as big or bigger” than the rise of the internet or smartphones, urging staff to act decisively and confidently.
Apple restructures teams and shifts focus to AI
Apple is reorganising internal teams and accelerating investments in AI. According to reports, around 40 percent of Apple’s 12,000 recent hires are focused on research and development, with many being reassigned to AI-related efforts.
Senior Vice President Craig Federighi addressed delays in Siri’s AI upgrades, revealing that Apple had originally attempted a hybrid architecture that combined legacy systems with large language models. However, the approach did not meet internal quality standards.
As a result, Apple is now developing a completely new architecture for its voice assistant, focusing on improved speed, accuracy, and relevance.
Apple forms new AI team and eyes acquisitions
Apple has created a new internal group called the "Answers, Knowledge and Information" (AKI) team. Its goal is to develop a generative AI engine that can compete with existing solutions like ChatGPT.
This marks a significant move for Apple as it prepares to compete in the AI-powered chatbot and search assistant space.
Additionally, Cook indicated that Apple is open to mergers and acquisitions that could accelerate its AI roadmap. While no deals have been confirmed, industry observers speculate that AI-focused startups—such as Perplexity AI or Mistral—could be potential acquisition targets.
Despite this increased focus on AI, Apple’s capital expenditure remains relatively modest compared to competitors, estimated at around USD13 to USD14 billion (approximately RM585 billion to RM630 billion) for fiscal year 2025.
What do you think of Apple’s approach to AI? Will its new architecture and internal restructuring be enough to catch up with rivals like OpenAI, Google, and Microsoft?
Stay tuned to TechNave.com for more updates.
COMMENTS