Will Apple Make a Bold Move in AI? Speculations on Healthcare Acquisitions
It’s been nearly two years since OpenAI’s ChatGPT took the world by storm. Following its launch, Microsoft invested billions into OpenAI, while Alphabet and Amazon backed a competing startup called Anthropic.
Meanwhile, Nvidia has emerged as a key player in the artificial intelligence (AI) sector, thanks to its GPU and data center solutions. Tesla has also been harnessing AI to develop self-driving cars and humanoid robots.
However, Apple (NASDAQ: AAPL) has been less vocal about its ambitions in AI. Other than a small acquisition and the introduction of Apple Intelligence—which has yet to gain traction—Apple has kept a low profile in this rapidly evolving space.
In this article, I will share my prediction about Apple’s potential moves into AI and how this could stimulate new growth for the company.
Possible Strategies for Apple
While Apple might consider developing its own chips or a customized large language model (LLM), I believe these options are unlikely. Instead, a more plausible scenario involves a significant acquisition—specifically, a medical device company rather than a company like Rivian Automotive.
The Impact on Apple’s AI Aspirations
One area ripe for AI innovation is healthcare, which has seen relatively little focus compared to other sectors. Notably, Apple has made strides in health management through products like the Apple Watch, which features tools for monitoring heart rates, tracking mobility, and managing medications.
Additionally, the Apple Watch can track sleep patterns, while the AirPods Pro 2 have functionality similar to hearing aids, monitoring environmental noise levels.
Precedence Research predicts that the market for healthcare AI could reach $614 billion by the early part of the next decade. This growth is expected to be powered by the increasing use of Internet of Things (IoT) devices such as smart wearables, alongside the software and services that integrate with them.
A move to acquire a medical device company could position Apple as a leader in this underexplored facet of AI. Given Apple’s existing health-focused technologies, such an acquisition would complement its portfolio strategically.
Furthermore, bringing new healthcare devices into play would deepen consumer engagement within Apple’s ecosystem of technology.
Potential Hurdles for Acquisition
However, several factors could prevent this prediction from materializing. Firstly, Apple is generally not known for making large acquisitions and often relies on its in-house innovation.
A recent product launch, its virtual reality headset Vision Pro, has not performed as expected. If Apple were to acquire a medical device company but fail to enhance products like the Apple Watch or AirPods, investors might question the company’s ability to innovate.
Additionally, Apple just released its new iPhone, which signifies its long-awaited entry into AI. If reactions to Apple Intelligence are lukewarm, the company may opt to refine existing services instead of pursuing a large acquisition that would necessitate considerable integration efforts.
The Bottom Line
Ultimately, I believe an investment in AI healthcare could be transformative for Apple. However, this remains speculation. Many variables would need to align for such a move to be successful, and it is quite possible that Apple will continue focusing on its established AI capabilities to increase market share against formidable competitors.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, and Tesla. The Motley Fool recommends options like long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.