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Apple is on track to surpass $1B in AI revenue this year, driven by App Store fees from generative AI apps. Monthly AI revenue grew from $35M in January 2025 to $101M in August before slowing. Apple is pursuing an on-device AI strategy while also planning a Gemini-powered Siri relaunch with Google.
Transcript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Apple is on pace to surpass $1 billion in artificial intelligence revenue this year,
00:07driven by fees from generative AI apps on its App Store, according to the Wall Street Journal.
00:12Revenue rose from about $35 million in January 2025 to $101 million in August before declining
00:19as ChatGPT downloads slowed. Apple's services business continues to grow faster than device
00:25sales and carries higher margins. The company is pursuing an on-device AI strategy using user
00:31data and proprietary chips, while competitors invest heavily in data centers and models.
00:36Apple investors want progress on its AI strategy and believe acting as a toll road for AI providers
00:42could support long-term performance without heavy capital spending. Apple and Google plan
00:47to launch a new Siri powered by Gemini this year. For all things money, visit Benzinga.com.
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