In 1996, Apple announced that it would buy NeXT for $400 million. The deal was finalized in February 1997, bringing Jobs back to the company he had cofounded. Jobs became de facto chief after then-CEO Gil Amelio was ousted in July 1997. He was formally named interim chief executive on September 16. In March 1998, to concentrate Apple's efforts on returning to profitability, Jobs terminated several projects, such as Newton, Cyberdog, and OpenDoc. In the coming months, many employees developed a fear of encountering Jobs while riding in the elevator, "afraid that they might not have a job when the doors opened. The reality was that Jobs's summary executions were rare, but a handful of victims was enough to terrorize a whole company." Jobs changed the licensing program for Macintosh clones, making it too costly for the manufacturers to continue making machines.

With the purchase of NeXT, much of the company's technology found its way into Apple products, most notably NeXTSTEP, which evolved into Mac OS X. Under Jobs's guidance, the company increased sales significantly with the introduction of the iMac and other new products; since then, appealing designs and powerful branding have worked well for Apple. At the 2000 Macworld Expo, Jobs officially dropped the "interim" modifier from his title at Apple and became permanent CEO. Jobs quipped at the time that he would be using the title "iCEO".