Analysts are debating whether heavy corporate spending on AI infrastructure will deliver a sustainable competitive edge for Apple. Commentators noted that companies such as Microsoft, Meta and Amazon are investing heavily to lead in AI, but Greg Ip of the Wall Street Journal argues those outlays may not create lasting advantages and are weighing on free cash flow. Ip notes the spending boosts measured economic growth but “is significantly burdening cash flow,” and he highlights a widening gap between free cash flow and reported earnings.

Ip compared the current wave of AI investment to the dot‑com era: some infrastructure investments had clear benefits, yet they also intensified competition and compressed margins. “Every time someone comes with a new model, and it seems hard to believe that anyone could create a sustainable competitive advantage,” he said.

Dan Ives of Wedbush told CNBC Apple’s AI strategy is “basically invisible” and warned “Apple must do something.” He suggested a major acquisition such as Perplexity, closer cooperation with Google’s Gemini and new AI hires as possible moves, and has a $270 target on Apple shares. #AAPL #AI #FiatNews