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Apple completes major Israeli startup acquisition focused on AI and audio tech

A strategic move into advanced AI-driven communication technology has led Apple to acquire an Israeli software company known for its work in facial movement analysis. The deal, announced on Jan. 29, brings Q.ai into Apple’s ecosystem as part of its growing push into machine learning and audio innovation.

Apple Inc. confirmed it has acquired Q.ai, though it did not disclose the transaction value. A source familiar with the matter said Q.ai was valued at about $1.6 billion, while other sources placed the deal at roughly $2 billion. If accurate, this would be Apple’s second-largest acquisition after its $3 billion purchase of Beats in 2014.

Q.ai develops AI software that supports audio processing and facial analysis. Its tools help devices understand whispered speech, improve sound in noisy environments, and read facial expressions. Patent filings show the technology relies on “facial skin micro-movements” to enable communication without speaking. A business daily reported this could allow users wearing headphones or smart glasses to interact with an AI assistant silently.

“Q.ai is a remarkable company that is pioneering new and creative ways to use imaging and machine learning,” said Johny Srouji, Apple’s senior vice president of hardware technologies. “We’re thrilled to acquire the company, with [CEO Aviad Maizels] at the helm and are even more excited for what’s to come,” he added.

Q.ai’s CEO Aviad Maizels and co-founders Yonatan Wexler and Avi Barliya, along with the firm’s 100 employees, will join Apple. The Ramat Gan-based startup was founded 4 years ago.

“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 said.

Maizels previously founded PrimeSense, which Apple acquired in 2013. That technology later supported Apple’s shift from fingerprint sensors to facial recognition on iPhones.

Data from Startup Nation Central shows Israel’s tech sector generated more than $111 billion in capital deals in 2025, nearly 4 times the previous year and above 2021’s record. Growth was driven mainly by productivity and AI efficiency rather than workforce expansion.

Also read: Viksit Workforce for a Viksit Bharat

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