Apple’s Spending to Increase to Improve AI Performance

Today’s ESG Updates

• Apple to Boost AI Spending Amid Competitive Pressure: CEO Tim Cook signals major investments as Apple looks to catch up with rivals 

• Trump Hits Dozens of Countries with New Tariffs: Tariffs imposed just hours after Mexico deadline extension, escalating trade tensions

• U.S. Expands Support for Rare Earths: White House pushes guaranteed pricing to spur domestic production and attract tech industry backing

• Heathrow Unveils £49B Expansion Plan Facing Climate Pushback: Third runway project draws business support but strong opposition over environmental impact

Apple is ready to increase its expenditures to enhance its AI performance

Apple’s CEO, Tim Cook, recently announced that the company is prepared to increase its spending to keep up with competitors in AI by building more data centers or buying a large industry player. The company’s rivals, including Google and Microsoft, have attracted hundreds of millions of users to their AI-powered bots and assistants. Still, they are also on track to spend several billion dollars largely on data centres over the next year or so. Meanwhile, Apple has attempted to grow most of its AI technology in-house, which has led to unstable results. Due to the ongoing Google antitrust trial, discussions with startups are underway, and Apple executives are considering reshaping their browsers as well. The company’s investments in AI are projected to grow substantially. To keep up with more industry developments, businesses can rely on ESG tools. 

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Further reading: CEO Tim Cook says Apple ready to open its wallet to catch up in AI

Trump imposes tariffs on dozens of countries hours before deadlines

Trump has just signed an executive order imposing reciprocal tariffs ranging from 10% to 41% on imports from dozens of countries and foreign locations, shortly after a 90-day deadline extension for a tariff deal with Mexico. China also faces a separate deadline for its higher tariffs of August 12, with an extension to the truce agreed in principle, which has yet to be approved by the White House. The tariff rates on 68 countries and the 27-member EU are to go into effect in seven days, instead of the initial August 1 deadline set by the president. Trump has stated that it was “too late” for the countries listed in the order to avoid the tariffs, but he remains open to offers. His administration team says that the nations not listed in the order will face a baseline 10% tariff. Officials have also disclosed that more trade deals will be announced. 

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Further reading: Trump imposes tariffs of 10% to 41% on dozens of countries, hours before deadline

U.S. rare earths projects to receive more financial support from Trump administration

Sources have disclosed that top White House officials have told a group of rare earths firms that they are pursuing a pandemic-era approach to boost U.S. critical minerals production and curb China’s market dominance by guaranteeing a minimum price for their products. Ten rare earths companies, as well as tech giants Apple, Microsoft, and Corning, had attended the meeting led by Peter Navarro, the President’s trade advisor, and David Copley, a National Security Council official. They told the meeting that a floor price for rare earths extended to MP Materials as part of a multibillion-dollar investment by the Pentagon was “not a one-off”, and that similar deals were also in the works. The pair had advised attendees to take advantage of existing government financial support, and mentioned that Trump was interested in seeing more tech companies invest in the rare earths sector. The administration officials have plans to hold another meeting in approximately four to six weeks. 

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Further reading: Exclusive: Trump administration to expand price support for US rare earths projects, sources say

Heathrow Airport’s expansion plans will cost £49B

Heathrow Airport has recently revealed details of its expansion and modernisation plans, which are projected to cost £49B. The work would be funded by private finance, and the government has supported plans for a third runway. These plans were welcomed by business groups and airline companies, but are facing strong opposition from environmental groups, politicians, and locals. A spokesperson said that the plans were expected to grow the UK economy by 0.43% GDP, but there are many concerns regarding the increased emissions that would accompany the airport expansion and jeopardise the UK’s climate goals. Heathrow’s plans follow the publication of a rival airport expansion proposal by the Arora group, and officials have said that both proposals will be carefully considered over this summer. Amid rising scrutiny, ESG tools help businesses stay aligned with market and climate expectations.

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Further reading: Heathrow Airport’s expansion plans to cost £49bn

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the cover photo: Folder of AI apps on iPhone, Apr. 2, 2024. Cover Photo Credit: Solen Feyissa