Apple Acquires Israeli Audio AI Startup Q.ai for $1.6 Billion: Report

On January 29, Apple announced that it has purchased Q.ai, an Israeli startup developing artificial intelligence technologies for audio. The terms of the Q.ai transaction, which was supported by venture capital firms Matter Venture Partners, Kleiner Perkins, Spark Capital, Exor, and GV, formerly known as Google Ventures, were not disclosed by Apple.

The purchase valued the startup at roughly $1.6 billion, according to a source familiar with the issue. How Apple plans to employ Q.ai's technology was not disclosed. It did, however, add that the business has been working on new machine learning applications. These apps will improve audio in difficult settings and aid devices in comprehending whispered conversation.

Specifics of Q.ai and Apple Deal

Q.ai's 100 workers, including CEO Aviad Maizels and co-founders Yonatan Wexler and Avi Barliya, will join Apple, the businesses stated. Maizels founded the three-dimensional sensing startup PrimeSense and sold it to Apple in 2013. In the end, the PrimeSense device assisted Apple in switching from fingerprint sensors to facial recognition technology for its iPhones.

Maizels said in a statement that joining Apple presents incredible opportunities to push boundaries and fully utilise the potential of what Q.ai has produced. Q.ai's team is excited to deliver these experiences to people everywhere. In order to identify a person and evaluate their emotions, heart rate, breathing rate, and other signs, Q.ai submitted a patent application last year to use facial skin micromovements to recognise words that have been said or mouthed.

Why Apple Enhancing its AI Network?

After postponing the release of an updated Siri voice assistant, Apple has been in danger of slipping behind in the AI race. This most recent acquisition implies that Apple is still investing in exclusive AI experiences that interact with its hardware ecosystem, even if it recently reached an agreement with Google to employ Gemini for Siri enhancements.

With new interaction models that feel more intimate and integrated into everyday life, Q.ai's technology may help Apple set itself apart from the competition. Apple is prepared to outsource and make significant investments in order to get back on track in the AI race. Competition may begin to depend on how users interact with AI on devices they already use on a daily basis as competitors like OpenAI and Meta investigate AI-first gadgets and new form factors.