"AI is More Than the Internet" — The Full Story of Tim Cook's Bold Declaration and Apple's Counterattack

"AI is a revolution bigger than the internet." This statement swept across the world. On August 2 (U.S. time), during an all-hands meeting at Apple's headquarters, CEO Tim Cook stood center stage under the lights and spoke for an hour about his commitment to AI. "Apple must do this. Apple will do this." The company, considered to be lagging, is now seriously steering towards AI. We explored the behind-the-scenes, the frenzy on social media, and the skepticism, combining exclusive interviews and online voices to uncover the full scope of Apple's latest AI strategy.

1. Cook's "Call to Arms"—Making AI "Ours"

It's unusual for Apple to hold a large gathering in front of all employees. According to Bloomberg, Cook emphasized that "the AI revolution surpasses the internet, smartphones, and the cloud," declaring that "this wave is one Apple must seize." Bloomberg.com
The venue was the company's auditorium, the "Steve Jobs Theater." From the outset, Cook referenced the rising stock prices, stating, "This quarter's sales exceeded expectations, but the true growth engine is AI."

2. Siri Redesign—Restarting from "Hybrid Defeat"

The AI version of Siri initially had a hybrid concept combining cloud LLM and on-device inference. However, internal tests deemed it "not meeting quality standards," leading to a complete overhaul. Craig Federighi, SVP of Software, declared, "The new Siri will be the largest upgrade ever."

Aiming for a release next spring, voice understanding and generation, as well as app integration, are being redesigned from scratch. A beta version has already been distributed internally, with some saying it allows for interactions as natural as ChatGPT.

3. "Baltra" Project and AI Data Centers

Apple is co-designing the AI-specific server chip "Baltra" (development code: ACDC) with Broadcom, with mass production planned for 2026. By introducing its own chip, the company aims to reduce inference costs by one-third and maintain the monthly fee for iCloud+.

Simultaneously, existing data centers, such as those in Prineville, Oregon, are being renovated to incorporate immersion cooling racks. Leaked photos from outside the company reveal blades equipped with numerous GPU modules equivalent to M3 Max.

4. Recruitment Drive—12,000 Reinforcements in One Year, 40% in R&D

Cook declared, "We will acquire the necessary talent," and over the past 12 months, 12,000 people have been hired, with 40% assigned to the research and development department.

With the increase in personnel, internal AI demo days are held every Friday, with over 50 projects underway, including generative music and 3D object auto-generation. Researchers from Meta and DeepMind have been joining in droves, and a team from Google Brain has also been incorporated.

5. Social Media Frenzy and Cynicism

**X (formerly Twitter)** saw "#TimCook" and "#AppleAI" trending. A tweet quoting Cook's statement, cited by news media Scoopearth, surpassed 50,000 likes. X (formerly Twitter)
Meanwhile, on Reddit's /r/apple, harsh comments like "They're just panicking now" and "The price of neglecting Siri for 13 years" dominated the top. Reddit
However, many defended Apple, saying, "Apple has always competed with experience, even when late to the game," and "There's hope for a privacy-focused AI ecosystem," leading to heated debates.

6. Comparison with Other Companies—Is Apple Really Lagging?

Microsoft is deploying Copilot in collaboration with OpenAI, AWS is securing corporate clients with Bedrock, and Google is challenging generative video with Gemini 2. Technologically, it's undeniable that Apple is the latest entrant. TechRadar analyzes that "Apple has succeeded with its 'Always second mover' strategy." TechRadar

However, the massive distribution network of the iPhone, strong silicon technology for on-device inference, and high-level UX design capabilities remain powerful.

7. Legal and Risk—Caught Between Lawsuits and Privacy

The chaos of the Siri refresh delay has led to two investor lawsuits, currently in litigation in California state court. Cook stated, "Privacy and ethics will be prioritized even in AI," revealing that a company-wide AI code of conduct is being formulated.

8. Revenue Model—The New Equation of "AI + Hardware"

Apple plans to gradually integrate AI features into iCloud+ and Apple One, aiming to increase subscription ARPU. Additionally, by equipping Vision Pro 2 with generative spatial avatars, the company targets the expansion of the entertainment VR market. The synergy between hardware and services is the core of Apple's monetization strategy.

9. Future Milestones

10. Conclusion—Can the "Latecomer Champion" Reclaim the Summit?

Apple has built a history of "latecomer to champion" with music players, smartphones, and tablets. Cook's declaration is in line with that history. However, the AI revolution is unprecedented in both speed and scale. The applause and cynicism on social media indicate an unprecedented duet of expectations and anxiety.
Next spring, whether the new Siri will actually "be usable" will be a touchstone for Apple's future. The time limit for the challenge is surprisingly near.

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