Apple, Meta, and Google are engaged in a fierce competition to dominate the next wave of artificial intelligence. This battle has recently intensified with a sharper focus on hardware. In a strategic move to gain an advantage, particularly in audio technology, Apple has acquired the AI startup Q.AI.
As first reported, Apple has purchased Q.AI, an Israeli startup specializing in imaging and machine learning. The company’s technologies enable devices to interpret whispered speech and enhance audio clarity in noisy environments. This acquisition aligns with Apple’s ongoing efforts to integrate new AI features into its AirPods, including the live translation capability introduced last year. Apple has also been developing technology to detect subtle facial muscle activity, which could significantly enhance the capabilities of its Vision Pro headset.
The deal is valued at nearly $2 billion, making it Apple’s second-largest acquisition to date, following the purchase of Beats Electronics for $3 billion in 2014. Notably, this marks the second time CEO Aviad Maizels has sold a company to Apple. He previously sold PrimeSense in 2013, a 3D-sensing company that played a key role in Apple’s transition from fingerprint sensors to facial recognition in iPhones.
Q.AI launched in 2022 and is backed by prominent firms including Kleiner Perkins and Gradient Ventures. As part of the acquisition, the founding team, including Maizels and co-founders Yonatan Wexler and Avi Barliya, will join Apple.
This news arrives just hours 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.