Apple acquires audio AI startup for $2 billion ↦

Apple confirmed to Reuters today that it has acquired an Israeli startup called Q.ai, which uses artificial intelligence technology to analyze audio:

Apple did not disclose terms of the deal or what Q.ai’s technology will be used for, but said the startup has worked on new applications of machine learning to help devices understand whispered speech and to enhance audio in challenging environments. In a statement, [CEO Aviad] Maizels said “joining Apple opens extraordinary possibilities for pushing boundaries and realizing the full potential of what we’ve created, and we’re thrilled to bring these experiences to people everywhere.”

Maizels was also the founder of PrimeSense, which Apple acquired back in 2013 and used as part of the basis for Face ID. Two of Q.ai’s co-founders will be joining the company as well. Though Apple didn’t confirm the price tag, the Financial Times has reported (paywalled) that the deal was worth almost $2 billion, which would make it the company’s second biggest acquisition after the 2014 purchase of Beats for $3 billion.1

There were lots of rumors in the last year that Apple might purchase an AI company to offset the challenges it’s had in the market; in the end, Apple opted to partner with Google to provide foundation models for its technology.

Overall, this feels more like a traditional Apple acquisition: a smaller company, more targeted in its use case, with talented staff that it can bring onboard. Apple’s already done plenty with machine learning around audio (including the translation features of the AirPods Pro and different audio modes in videos shot on the iPhone), and this would set them up well for improving everything from microphone performance to perhaps some of its live captioning features—perhaps in a future smart glasses product, for example.

Adjusting for inflation, though…woof. ↩

Go to the linked site.

Read on Six Colors.