$Apple(AAPL)$ For the first time in at least three decades, Apple is spending over 10 cents of every revenue dollar on R&D. This is one of the clearest signs yet that the iPhone maker is committing serious money to its AI ambitions.

In the March quarter, Apple's R&D spending reached 10.3% of revenue, up from 7.6% in the prior period and 9% a year earlier. While sales jumped 17%—the fastest growth rate for any quarter since 2021—R&D climbed even faster, increasing almost 34% year-over-year, twice the pace of sales growth.

With CEO Tim Cook preparing to step down after a 15-year run, he's finally putting the kind of muscle into AI that investors have been looking for since OpenAI kicked off the generative AI boom in late 2022. Gene Munster, managing partner at Deepwater Asset Management, noted that Apple's push brings it closer to the hyperscalers. He pointed out that across Google, Microsoft, Meta, and Amazon, the average year-over-year R&D increase for the quarter was 29%. "Apple is catching up to the other mega-tech companies when it comes to R&D for AI," Munster said. "That's a sign that Apple is seeing a sense of urgency around new AI products."