In partnership with

Simplify Training with AI-Generated Video Guides

Simplify Training with AI-Generated Video Guides

Are you tired of repeating the same instructions to your team? Guidde revolutionizes how you document and share processes with AI-powered how-to videos.

Here’s how:

1️⃣ Instant Creation: Turn complex tasks into stunning step-by-step video guides in seconds.
2️⃣ Fully Automated: Capture workflows with a browser extension that generates visuals, voiceovers, and call-to-actions.
3️⃣ Seamless Sharing: Share or embed guides anywhere effortlessly.

The best part? The browser extension is 100% free.

Check out Guidde

Hey, josh here. Check this out.

Apple's M&A Admission Isn't a White Flag—It's Just How This Works Now

Listen, when Tim Cook said Apple is "open to pursuing M&A" for AI development on their October 30th earnings call, the tech press collectively lost its mind. Headlines screamed about Apple "admitting defeat" in the AI race. But here's the thing: everyone needs to calm down.

Let's break down what's actually happening here.

What Cook Actually Said (And What He Didn't)

Cook outlined a three-pronged approach: build AI in-house, partner with third-party LLMs, and yes, buy companies when it makes sense. Apple's already acquired seven companies in 2025—roughly one every few weeks. None were massive bets. This is targeted shopping, not panic buying.

He also mentioned that servers from their new Houston facility are shipping to data centers, they're using Private Cloud Compute for Siri queries, and next-gen Siri is still on track for 2026. Not exactly the language of a company in crisis.

The "Apple Is Losing" Case Actually Has Merit

Before we get too defensive, let's acknowledge the real problems:

Siri is genuinely behind. Advanced features have been delayed multiple times. Bloomberg reported some team members view it as a "crisis," with tech "years behind the competition." Former employees cite organizational silos and a privacy-first approach that, while admirable, constrains innovation at scale.

Talent is walking out the door. High-profile AI researchers have jumped to Meta and OpenAI. That's not nothing.

The stock has underperformed. Apple dropped 15-20% year-to-date while the Magnificent Seven rallied. Investors are nervous about AI clarity.

These are legitimate concerns. Apple is behind in raw model sophistication compared to OpenAI, Google, and Microsoft.

But M&A Openness? That's Not the Smoking Gun

Here's the kicker: nearly two-thirds of business leaders plan to use M&A to bolster AI capabilities within 12 months. This rises to 70% over three years. Microsoft dropped $10 billion on OpenAI. Google's contemplating a $32 billion Wiz acquisition. Meta's doing selective acquisitions while building Llama.

This is just how tech works now. The AI landscape is moving too fast for any single company to build everything internally.

What's Apple actually shopping for? Not general-purpose LLMs—they're partnering with OpenAI for that. Instead, they're hunting for specialized capabilities: model compression, edge inference optimization, privacy-preserving machine learning techniques, multimodal perception systems. Past acquisitions like Siri, Turi, and Xnor.ai followed exactly this pattern.

Apple's Running a Different Race Entirely

The real story is that Apple's CapEx strategy is deliberately different. They spent $3.46 billion on AI in Q3 2025. Compare that to Google's $85 billion, Meta's $72 billion, or Microsoft's $30 billion.

This isn't because Apple's broke—they have more cash than God. It's strategic. Apple's betting on privacy-first edge computing and on-device processing, not brute-force cloud infrastructure. They're aiming for "personal intelligence" dominance across 1.5 billion devices, not frontier model supremacy in the cloud.

As one analyst put it: "Apple is not losing the AI race; it is running a different one entirely."

The Market Seems to Agree

After Cook's M&A comments, Apple's stock rose 0.99% after-hours, nearing 52-week highs. Bank of America raised their price target to $320, projecting Apple's annual earnings could double over five years driven by AI strategy. Morgan Stanley and Loop Capital maintained or upgraded ratings.

If this were truly an admission of defeat, the market would've punished them. Instead? Optimism.

The Distinction That Matters

There's a critical difference between M&A as weakness versus M&A as strategy:

Weakness: When a dying company acquires competitors to admit strategic failure (think Yahoo's desperate acquisition spree).

Strategy: When a company with clear competitive advantages acquires targeted IP to accelerate execution (Microsoft's acquisition pattern, Apple's historical model).

Cook's framing points toward the latter. Apple's not trying to "buy an LLM"—they're partnering for that. They're acquiring small, focused teams to solve specific problems within an already-defined roadmap.

The Realistic Verdict

Apple is genuinely struggling with Siri execution, talent retention, and rapidly scaling AI features. These are real competitive disadvantages.

But M&A openness? That's not capitulation—it's pragmatism. Apple's recognizing that certain AI capabilities can be acquired faster than built, particularly in specialized domains where they're not playing to their core strengths.

The company still has massive advantages: brand loyalty, hardware differentiation, ecosystem lock-in, privacy positioning, and 1.5 billion active devices. iPhone 17 sales are strong, with analysts projecting double-digit growth.

The real story isn't "Apple admits defeat." It's that Apple's investing heavily in AI while accepting that not all capabilities need to be built internally—a balanced approach that actually aligns with broader industry trends.

That's not losing. That's just being realistic about how fast this is moving.