Tim Cook sees Apple's hybrid AI strategy as a 'competitive weapon' - CNBC

On his final earnings call as CEO, Apple's Tim Cook told analysts the company sees "enormous opportunities" in artificial intelligence, even as its stock slipped on supply constraint concerns. Cook is set to become executive chairman on Sept. 1.
Cook framed Apple's hybrid AI approach—running some workloads directly on iPhones and Macs rather than solely in the cloud—as "very strategic and sort of a competitive weapon" against larger tech rivals.
Apple plans to use AI as a selling point for iCloud, with Cook suggesting upgrade options on iCloud+ for heavy users of its AI features.
Unlike hyperscaler peers Alphabet, Amazon, Meta, and Microsoft, which have each committed over $100 billion in capital expenditures this year toward Nvidia-based data centers, Apple spent just $2.46 billion in the June quarter—below the $3.44 billion StreetAccount estimate—though Cook noted operating expenses and AI spending are rising.
Cook cited Disney as an example of on-device efficiency, saying its creative teams are turning to Mac for AI workflows that cut cloud token costs and keep intellectual property secure.
The hybrid strategy faces a key test with the fall launch of an updated Siri, which will rely on the iPhone's processor for many queries while using Google Cloud infrastructure for more complex AI tasks.