"The way that we look at AI is that it's one of the most profound technologies of our lifetime" Cook said. "It will affect all devices in a significant way."

Apple is open to M&A to accelerate its AI strategy, and says it's made seven acquisitions this year so far.

"The way that we look at AI is that it's one of the most profound technologies of our lifetime" Cook said. "It will affect all devices in a significant way."

Apple CEO Tim Cook held an hourlong all-hands meeting in which he told employees that the company needs to win in AI: "Apple must do this. Apple will do this."