AI investments are also driving increased CapEx spending, which was up year-to-date, the company said. However, Apple pointed out that it still employed a hybrid model where it relies on third parties to make capital investments, which is why the figure won’t grow exponentially.

According to Tim Cook, Apple wouldn't be opposed to acquiring an AI company to help Apple Intelligence catch up with the competition.

Apple’s CEO hosted a rare all-hands with staff on Friday, where he presented an optimistic vision for Apple’s AI efforts.