Apple, Meta, and Google are engaged in a fierce battle to lead the next wave of artificial intelligence. This competition has recently intensified with a heightened focus on hardware. In a strategic move to gain an edge, particularly in audio technology, Apple has acquired the AI startup Q.ai.
Apple’s acquisition of Q.ai, an Israeli startup specializing in imaging and machine learning, was first reported by Reuters. The company’s technologies enable devices to interpret whispered speech and enhance audio clarity in noisy environments. This aligns with Apple’s ongoing efforts to integrate new AI features into its AirPods, such as the live translation capability introduced last year. Apple has also been developing technology to detect subtle facial muscle activity, which could enhance the functionality of its Vision Pro headset.
The Financial Times reported the deal is valued at nearly $2 billion, making it Apple’s second-largest acquisition to date. The largest remains the purchase of Beats Electronics for $3 billion in 2014. Notably, this marks the second time Q.ai CEO Aviad Maizels has sold a company to Apple. He previously sold PrimeSense, a 3D-sensing company, to Apple in 2013. PrimeSense’s technology played a key role in Apple’s transition from fingerprint sensors to facial recognition in iPhones.
Q.ai launched in 2022 with backing from venture firms including Kleiner Perkins and Gradient Ventures. As part of the acquisition, the founding team—Aviad Maizels, Yonatan Wexler, and Avi Barliya—will join Apple.
This news arrives just ahead of Apple’s first quarterly earnings report. Analysts estimate the company’s revenue will be around $138 billion, with expectations for the strongest iPhone sales growth in four years.