In a rare all-hands meeting, Apple CEO Tim Cook energized employees with a strong message: Apple’s future in artificial intelligence is “ours to grab.” Speaking at the Steve Jobs Theater at Apple Park, Cook addressed thousands of employees, emphasizing the company’s commitment to AI and an “amazing” lineup of upcoming products.
While Apple has faced criticism for being late in the AI race, Cook acknowledged the company’s history of arriving late but ultimately redefining product categories. “We’ve rarely been first,” Cook said, pointing out that there were personal computers before the Mac, smartphones before the iPhone, and MP3 players before the iPod. “But Apple invented the modern versions of those products. That’s how I feel about AI.”
Apple debuted its Apple Intelligence suite months after competitors like OpenAI, Google, and Microsoft launched their AI platforms. However, initial reactions to Apple’s AI tools were lukewarm. Cook reassured employees that the company is fully committed to AI innovation, vowing, “We will make the investment to do it.”
The hourlong meeting also touched on a variety of topics, including the retirement of COO Jeff Williams, the growing audience of Apple TV+, advances in health technology such as hearing aid features for AirPods Pro, and Apple’s environmental commitment to becoming carbon neutral by 2030. Cook stressed the importance of maintaining user privacy and security amidst growing global scrutiny of Big Tech regulations.
Despite posting a strong earnings report with nearly 10% sales growth in the June quarter, Apple faces significant challenges. Tariffs imposed by the Trump administration are projected to cost Apple $1.1 billion this quarter, and regulatory crackdowns in the EU threaten App Store revenues. Still, Cook maintained an optimistic tone, noting that App Store revenue grew by double digits despite these headwinds.
Apple’s AI strategy heavily depends on its custom chip development, spearheaded by Johny Srouji. The company is reportedly working on a powerful new cloud-computing chip, codenamed “Baltra,” designed to support AI features. Additionally, Apple is setting up a new AI server manufacturing facility in Houston to expand its AI infrastructure.
Craig Federighi, Apple’s Senior Vice President of Software Engineering, joined the meeting to update staff on the future of Siri. Apple initially planned to integrate large language models into Siri earlier this year, but the project faced delays. Federighi explained that the company had to abandon its hybrid system, which attempted to merge Siri’s existing architecture with new AI models, in favor of a complete overhaul. “We realized that approach wasn’t going to meet Apple’s quality standards,” he said.
The revamped Siri, featuring an entirely new system architecture, is expected to launch by spring next year. Federighi credited leadership changes, particularly the involvement of Mike Rockwell’s Vision Pro team, with accelerating Siri’s progress. “This project has become the most serious focus within the company,” Federighi noted.
Cook urged employees to adopt AI in their daily workflows and encourage their teams to accelerate AI deployment across Apple’s services and products. “To not do so would leave us behind,” he said. “And we can’t allow that.”
On Apple’s retail strategy, Cook emphasized expansion into emerging markets. The company plans to open new stores in India, the UAE, China, and its first location in Saudi Arabia next year. Cook highlighted that a “disproportionate amount of growth” would come from these emerging regions, though Apple will continue investing in its online store and established markets.
While Cook didn’t reveal specific product details, he expressed unprecedented excitement about Apple’s future innovations. Bloomberg has reported that Apple is developing its first foldable iPhone, new smart home devices, smart glasses, robotics initiatives, and a redesigned iPhone for its 20th anniversary.
“The product pipeline, which I can’t talk about: It’s amazing, guys. It’s amazing,” Cook teased. “Some of it you’ll see soon, some later, but there’s a lot to be excited about.”
As the AI race intensifies, Apple’s late entry has sparked concerns among analysts. However, Cook’s message was clear: Apple intends to follow its classic playbook arrive late, perfect the product, and redefine the market.
