Deluxe AI-partment in the sky: Apple boosts spending 61% as it builds private cloud empire

Apple is preparing to significantly increase its capital expenditures to build out AI infrastructure, with CFO Kevan Parekh confirming the company anticipates “substantial” growth in capex during its Q3 2025 earnings call. The tech giant is investing heavily in its own data centers powered by Apple Silicon chips as part of its Private Cloud Compute architecture, marking a strategic shift toward first-party AI infrastructure while maintaining some reliance on third-party platforms.

What you should know: Apple’s AI infrastructure spending surge reflects a major strategic pivot toward owning more of its compute stack.

• Capital expenditures jumped to $3.46 billion in Q3 2025, up from $2.15 billion in the same quarter last year.
• CEO Tim Cook confirmed spending will rise again in the September quarter, though exact figures weren’t disclosed.
• The company is “reallocating a fair number of people to focus on AI features” as it integrates AI across its platforms.

The big picture: Apple is building a hybrid infrastructure approach that balances proprietary control with strategic partnerships.

• Private Cloud Compute uses Apple’s own servers powered by Apple Silicon to deliver AI capabilities while preserving user privacy.
• The company maintains relationships with third-party compute providers while investing heavily in first-party infrastructure.
• Apple’s expanding footprint includes data centers in the U.S., China, and Denmark that consumed 2,500 GWh of power in 2024.

Key hardware investments: Apple is exploring diverse chip architectures to power its AI ambitions beyond its own Silicon.

• The company has been linked to a potential $1 billion purchase of Nvidia GB300 NVL72 systems.
• Apple is working with Broadcom on custom AI chips through its Baltra project.
• The company is also evaluating Google TPUs (specialized AI processing chips) for training AI models and expanding compute capacity.

What they’re saying: Apple executives emphasized the company’s commitment to privacy-focused AI infrastructure.

• “Our servers, also powered by Apple Silicon, deliver even greater capabilities while preserving user privacy through our Private Cloud Compute architecture,” Cook explained.
• Parekh noted that “a large share of upcoming investments will go into first-party infrastructure” as the company scales its AI capabilities.