In a bold address to employees, Apple CEO Tim Cook has called artificial intelligence a revolution even greater than the internet or smartphones, asserting that Apple must act swiftly to lead in this transformative era. Speaking at a rare all-hands meeting at Apple’s Cupertino campus following the company’s latest earnings report, Cook laid out a determined roadmap that places AI at the heart of Apple’s future.

“Apple must do this. Apple will do this. This is sort of ours to grab,” said Cook, underscoring the urgency with which the company is approaching AI. “We will make the investment to do it.”

Drawing parallels with previous tech shifts, Cook acknowledged Apple’s historical pattern of entering markets later than competitors but ultimately reshaping them with superior products. “We’ve rarely been first,” he said. “There was a PC before the Mac; there was a smartphone before the iPhone; there were many tablets before the iPad; there was an MP3 player before iPod. This is how I feel about AI.”

Although Apple has lagged behind rivals such as OpenAI, Alphabet, and Microsoft in publicly launching AI capabilities, Cook remains confident in the company’s approach. Apple Intelligence, introduced last year, faced delays that impacted the iPhone 16 rollout, yet Cook downplayed the timeline issues, reaffirming Apple’s commitment to delivering best-in-class solutions. “To not do so would be to be left behind, and we can’t do that.”

The CEO also highlighted internal efforts, noting that of the 12,000 new employees Apple hired in the past year, 40 percent are in research and development — many focused on AI. This push includes in-house chip development, particularly the new AI-optimized cloud chip codenamed Baltra, led by Johny Srouji. In addition, Apple is establishing a dedicated AI server facility in Houston, signaling its seriousness in scaling AI infrastructure.

Cook also addressed the company’s openness to AI-related mergers and acquisitions. Reports suggest that Apple has considered acquiring companies like Perplexity, an AI search engine, and the French startup Mistral AI, as part of its acceleration strategy.

Beyond AI, the meeting covered other strategic areas. Cook acknowledged ongoing challenges from U.S. tariffs, estimating a $1.1 billion impact this quarter. Despite regulatory headwinds, especially in Europe, he noted that App Store revenue grew by a strong double-digit margin in the previous quarter.

Retail expansion remains a high priority. Apple plans to open new outlets in India, the UAE, and China this year, with a debut location in Saudi Arabia slated for next year. “We need to be in more countries, and you’ll see us go into more emerging markets in particular,” Cook said, while assuring that Apple will continue investing in established regions as well.

Cook concluded by reaffirming Apple’s focus on environmental commitments, the growth of Apple TV+, and the challenges of navigating global tech regulations. “Big Tech is under a lot of scrutiny around the world,” he said, urging for regulatory clarity that doesn’t compromise user experience, privacy, or security.