Apple isn’t playing the same AI capex game as the rest of the megacaps

CNBC.com ^ | Thu, Oct 30 20257:37 PM EDT | Kif Leswing @kifleswing

[E. Pluribus Unum]

• While many of the largest tech companies race to build massive data centers for their artificial intelligence ambitions, Apple is taking a more modest approach.
• In its fiscal 2025, which ended in September, Apple spent $12.72 billion on capital expenditures. Compared to Alphabet, Meta, Microsoft and Amazon, Apple’s barely spending at all.
• Apple’s different approach to AI hasn’t hurt its hardware sales yet. CEO Tim Cook told CNBC Thursday that consumer response to the company’s iPhone 17 models was “off the chart.”

While many of the largest tech companies race to build massive data centers for their artificial intelligence ambitions, Apple is taking a more modest approach.

Instead of simply buying as many AI chips as possible, Apple buys computing capacity from outside partners, finance chief Kevan Parekh explained Thursday on the company’s fourth quarter earnings call.

When Apple does build servers for its AI software, the company is using its own chips — not those from Nvidia or AMD — to power a service it calls Private Cloud Compute.

“I don’t see us moving away from this hybrid model, where we leverage both first-party capacity as well as leverage third-party capacity,” Parekh said.

Apple’s results on Thursday closed out a busy week of earnings for the tech industry. Alphabet, Microsoft, and Meta reported on Wednesday, while Amazon reported on Thursday.

All of the companies said they planned to boost spending on capital expenditures to secure the computing capacity needed to develop next-generation AI and serve users.

Alphabet said it expects to spend about $92 billion on capital expenditures this year. Microsoft said it spent about $34.9 billion on capex during the September quarter and will spend more in capex for its fiscal 2026 than...

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TOPICS: Computers/Internet
KEYWORDS: alphabet; amazon; amd; apple; eplentyofspam; epluribusrino; meta; microsoft; nvidia; sirspamalot; spammingfr

[butlerweave]

iPhones spy on you all the time even when it’s off ,LOL

[SunkenCiv]

• Apple will outperform Amazon from tomorrow to end of year,
  says Deepwater's Gene Munster | 4:28 | CNBC Television | October 30, 2025

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[bigbob]

For now,, they’ll buy rather than make and exploit tax advantages.

[House Atreides]

Tulips anyone?

[Rastus]

Siri is so dumb now.

[Sequoyah101]

Reminds me of a time when every CEO thought he needed a long term take-or-pay contract on at least one new build drill ship no matter the size of his company.

Yeah, Tulips anyone?

Greed and fear of being left out or being called wrong for missing out does that to the corner office.

I knew one man who was CEO of a fairly large oil company that steered his course by leadership instead of being run by the quarter to quarter gang and whims of analysts and special share holders. It served the investors, employees and the long term future and integrity of the company.