<div id="readability-page-1" class="page"><div><div>Apple Inc AAPL is under pressure to go big in artificial intelligence, but history warns that mega-deals can quickly turn into mega-disasters.From AT&amp;T's T costly Time Warner experiment to Microsoft Corp's MSFT failed Nokia buyout, corporate America is littered with deals that once looked bold but ended in regret. Now, with Apple Senior Vice President of Services Eddy Cue reportedly floating ideas of acquiring AI firms such as Mistral or Perplexity, the question is whether CEO Tim Cook should risk repeating those mistakes.How is APPL stock doing now? Check it out here.<h2>When Big Bets Backfire</h2>AT&amp;T's $85 billion takeover of Time Warner ended in a humiliating unwind just four years later, costing shareholders billions. Microsoft's approximately $7 billion Nokia acquisition was another costly lesson in how ambition can cloud judgment. Both stand as reminders that the price of going big often outweighs the payoff. For Apple, buying an AI startup at inflated valuations could be déjà vu.Read Also: Six Years Late, Apple’s Foldable iPhone Could Still Flip Everything<h2>The Exceptions That Prove The Rule</h2>Of course, not all acquisitions go south. Alphabet Inc‘s Google's $1.65 billion YouTube purchase and Meta Platforms Inc.'s META about $1 billion Instagram bet turned into defining wins. Even Apple's approximately $278 million buy of Palo Alto Semiconductor laid the foundation for its breakthrough in custom chip design.But crucially, these were smaller, earlier-stage acquisitions — not headline-grabbing mega-deals.<h2>Cook's Discipline May Be Apple's Edge</h2>Tim Cook's decision to pass on Netflix Inc NFLX and Tesla Inc TSLA may have looked conservative, but restraint has served Apple well. By avoiding overpriced bets, Apple has maintained enviable margins and firepower for strategic partnerships — such as its integration of ChatGPT into the iPhone. Shareholders may find that Apple's best move in AI is simply not overplaying its hand.<ul> <li>Apple Acquisition Buzz: Its $60 Billion War Chest Is Enough To Buy Datadog And Tempus</li> </ul>Photo: hanohiki via Shutterstock</div></div></div>

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Apple Inc is under pressure to pursue major acquisitions in artificial intelligence, but historical precedents warn against such moves. Past mega-deals, like AT&T's Time Warner and Microsoft's Nokia buyout, ended in significant losses. While some smaller acquisitions have proven successful, CEO Tim Cook's cautious approach may be beneficial. By avoiding inflated valuations, Apple can maintain strong margins and strategic partnerships, suggesting that restraint in AI investments could be the best strategy for the company.

- Apple Inc. faces pressure to invest heavily in artificial intelligence, but past mega-deals often resulted in failures, as seen with AT&T's Time Warner and Microsoft's Nokia acquisitions.  
- While some smaller acquisitions have proven successful, such as Google's YouTube and Meta's Instagram, these were not large-scale deals.  
- Tim Cook's cautious approach may benefit Apple by avoiding overpriced acquisitions, allowing for strategic partnerships and maintaining strong margins.

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Apple Hunts Big AI Deals — But Time Warner, Nokia Still Haunt The M&A Playbook