Tim Cook Rallies Apple Around AI Future, Hints At Major Product Shakeup

Apple CEO Tim Cook took an unusual step on Friday, addressing employees directly at a rare all-hands town hall held at the Steve Jobs Theatre. The message was clear: AI is Apple’s next big move, and the company is ready to go all in. Coming off a strong earnings report with nearly 10% sales growth, Cook used the momentum to drive home Apple’s vision for artificial intelligence—calling it potentially bigger than the internet, smartphones, or cloud computing.

While Apple has arrived late to the generative AI race, Cook positioned this delay as intentional. Just like the iPhone or the Apple Watch, the company aims to perfect, not pioneer.

Apple’s AI Strategy: From Behind to Bold

• Cook acknowledged Apple’s late entry into AI, but emphasised the company's strength in refinement
• He described AI as "ours to grab", suggesting Apple sees this shift as a defining opportunity
• The company is working on a full Siri overhaul, ditching its hybrid architecture for a new system expected by spring 2026
• Vision Pro lead Mike Rockwell is now heading Siri development, signalling a major internal shake-up

Craig Federighi, Apple’s software chief, reportedly admitted the original approach to improving Siri "wasn't going to get us to Apple quality"—a rare candid remark that highlights just how seriously Apple is taking this revamp.

AI Everywhere: Inside Apple’s Big Push

Cook didn’t just focus on Siri. He revealed the broader strategy:

• Apple  being built into the core of the company’s ecosystem
• A new AI server hub is being set up in Houston
• Apple is designing custom AI chips, code-named Baltra, to power upcoming AI features
• Over the past year, Apple hired 12,000 new hires, 40 per cent in research and development (R&D). Many are directly working on AI tools.

The CEO urged employees to embrace artificial intelligence quickly or risk falling behind competitors like OpenAI, Google and Amazon.

What’s Next: Product Pipeline and Global Growth

While Cook didn’t name specific products, he hinted at an “amazing pipeline” during the meeting. Here’s what’s been previously reported:

In addition to product innovation, Apple is expanding its retail footprint into key growth markets:

• India
• UAE
• China
• Saudi Arabia

Apple's move shows its desire to broaden its presence beyond mature markets while adhering to its wider AI deployment plans.

Final Thoughts

Tim Cook's groundbreaking town hall marks an inflection point: Apple is betting big on AI as both an individual feature and part of its ecosystem as a whole. From rebuilding Siri from scratch to designing custom chips and expanding internationally, Apple is making long-term moves in terms of AI development to catch up (or surpass) competitors in terms of AI development. Whether or not this strategy pays off will depend on execution; one thing is certain though: no longer sitting out this race for superior AI solutions.