Apple's Modest AI Spending Contrasts Megacap Tech Surge

In 2025, Apple has adopted a notably restrained strategy in artificial intelligence infrastructure spending compared to other major tech companies like Alphabet, Microsoft, Meta, and Amazon, which are investing tens of billions in AI data centers and computing capacity. Apple spent $12.72 billion on capital expenditures in fiscal 2025, significantly less than its competitors, and relies on a hybrid model combining its own chips in Private Cloud Compute and third-party computing resources. Despite this frugality, Apple has seen strong consumer demand, with CEO Tim Cook reporting "off the chart" sales of the iPhone 17 and its services segment surpassing $100 billion in revenue, highlighting a robust business model that is not yet heavily dependent on AI investments. Apple's strategic patience reflects a device-centric, ecosystem-first approach to AI, contrasting with rivals' heavy infrastructure bets, and the company continues aggressive stock buybacks, signaling confidence in its existing business. Critics question whether Apple's lower AI spending might risk falling behind in the AI race, but others view its disciplined approach as potentially advantageous if competitors overextend. Ultimately, Apple’s AI push is more focused on integrating AI capabilities into its products rather than massive infrastructure build-out, as seen by its use of proprietary chips and incremental capital expenditure increases.