Apple Inc's (NASDAQ:AAPL) massive $60+ billion cash pile is once again in the spotlight – and with rivals racing ahead in AI, investors are wondering: is it finally time for Apple to make a bold move?
The discussion heated up this week after Apple confirmed that COO Jeff Williams will retire in 2025, marking a rare leadership shake-up at the famously stable company. While some see it as a routine transition, others say it’s the opening Apple needs to shift its approach – particularly on artificial intelligence.
AI Spending Gap: Apple Can Afford to Catch Up Fast
While Meta Platforms Inc (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT) and Alphabet Inc‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google have made bold AI acquisitions or launched internal platforms (OpenAI partnerships, Gemini, LLaMA, etc.), Apple has largely sat on the sidelines – despite having one of the biggest acquisition budgets in the game.
While analysts speculate about Apple's next move following the COO exit, the raw numbers suggest it could reshape the AI landscape practically overnight—if it chose to.
Wedbush analyst Dan Ives has pointed out potential AI targets like Perplexity, but others believe Apple should think even bigger. Two names at the top of that list? Datadog Inc (NASDAQ:DDOG), valued at around $48 billion; and Tempus AI Inc (NASDAQ:TEM), valued at approximately $10.4 billion.
Apple's cash reserve – about $60 billion – is more than just a cushion for rainy days. It's a strategic asset that dwarfs the entire market capitalizations of some of the rising tech players. Stripping away real-world constraints like deal feasibility, regulatory approval, or strategic fit, Apple's $60 billion cash reserve is large enough—at least on paper—to outright acquire both Datadog and Tempus AI.
In short: if Apple wanted to, and if no constraining rules applied, it has enough cash to scoop up both companies and still have money left over.
Leadership Change Could Signal Strategy Shift
The decentralization of Jeff Williams' role across hardware and operations leaders could loosen Apple's famously tight structure – and perhaps invite more aggressive bets. The market responded mildly, with shares up 0.5%, but the potential is anything but mild.
If Apple really wants to make noise in AI, it's got the ammo. Now investors are waiting to see if it pulls the trigger.
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