Apple is reducing expenses for artificial intelligence. What are the reasons?

In recent years, major technology companies have significantly increased their spending on artificial intelligence development, with Alphabet, Amazon, Microsoft, and Meta planning investments of approximately 700 billion dollars in 2024. In contrast, Apple has reduced its capital expenditures by 36%, opting not to develop its own language models and the necessary infrastructure. The company relies on hardware, continuing to sell iPhones and Macs, and reported a 17% annual increase in net sales.

Instead of investing in AI, Apple announced a 100 billion dollar share buyback program, demonstrating confidence in its business model. Analysts are divided on whether to consider this strategy a smart move or a strategic mistake, given the risks associated with investments in AI. However, Apple is still working on new devices dedicated to the AI era, and under the leadership of new CEO John Ternus, the company may change its investment strategy. Research and development spending has significantly increased, reaching 11.4 billion dollars.