On Thursday, Apple CEO Tim Cook said the Silicon Valley company could end up spending nearly $2 billion thanks to President Donald Trump’s tariffs.

“For the June quarter, we incurred approximately $800 million of tariff-related costs,” Cook told investors on an earnings call. He added that the company expects those costs to climb to $1.1 billion in the quarter ending in September if Trump’s tariff policies remain unchanged. As Apple watchers know, that’s the same month when the new round of iPhones (and their prices) will be announced.

Trump’s tariff policies have affected all of Apple’s devices, which are manufactured primarily in China, India, and Vietnam. Since the beginning of his second term, Trump has used the threat of tariffs to pressure Apple and other American companies to shift production back to the U.S. In an effort to appease Trump, Apple said it is launching a manufacturing academy in Detroit later this year. The project is tied to the company’s plan to invest more than $500 billion in the U.S. over the next four years.

Even with the added costs, Apple still managed to boost revenue 10% year-over-year in the quarter, reaching $94 billion.

On the AI front, Cook told investors that Apple plans to “significantly” increase its investments in artificial intelligence, as it tries to catch up with its rivals. He said that the company is open to acquisitions that could accelerate those efforts.

Apple wasn’t the only company to talk about AI this week during its earnings report.

Amazon also reported earnings on Thursday, revealing the scale of its AI spending. The e-commerce giant poured $31.4 billion into capital expenses last quarter and expects a similar pace in the second half of the year. CEO Andrew Jassy also highlighted Alexa+, a premium version of its digital assistant, as one way the company could further monetize AI with ads.

“People do a lot of shopping [with Alexa+]; it’s a delightful shopping experience that will keep getting better,” Jassy said on a call with investors. “I think over time, there will be opportunities, as people are engaging in more multi-turn conversations, to have advertising play a role to help people find discovery, and also as a lever to drive revenue.”

For Microsoft, its AI bets are already paying off in a big way. After reporting earnings this week, the software giant joined Nvidia as the only companies in history to reach a $4 trillion market cap. Revenue for the latest quarter rose 18% to $64 billion, driven largely by growth in its cloud computing services.

Despite its financial success, Microsoft recently cut thousands of jobs. In a company-wide memo, CEO Satya Nadella described this tension as the “enigma of success,” noting that the company is posting record profits even as it laid off 9,000 workers earlier this month.