Apple is reportedly in the final stages of acquiring top talent and technology from computer vision startup Prompt AI, according to information accessed by a common source.
During an all-hands meeting held on Thursday, Prompt’s leadership informed employees about the upcoming acquisition. They shared that those not joining Apple would receive a reduced salary and were encouraged to apply for open positions at the company.
The 11-member startup was also approached by other potential buyers, including Elon Musk’s xAI and Neuralink, executives revealed during the meeting.
Founded in 2023, Prompt AI raised 5 million dollars in seed funding led by AIX and Abstract Ventures. The company was co-founded by CEO Tete Xiao, an AI researcher with a PhD in computer science from UC Berkeley, and President Trevor Darrell, founder of the Berkeley Artificial Intelligence Research (BAIR) lab.
Executives stated that investors would recover part of their investments but “won’t be made whole.” Employees were also instructed to avoid mentioning Apple while seeking new opportunities or discussing the development with friends and family.
Prompt AI’s flagship product, the Seemour app, connects to home security cameras to enhance their functionality. The app uses advanced computer vision to detect people, pets, and other objects, sending alerts or text-based summaries of unusual activity. It can also answer user questions about what has been happening in front of the camera.
During the meeting, Xiao told employees that while the technology behind Seemour was successful, the business model was not sustainable. The company will retire the app and notify users that their data will be deleted and privacy protected.
Tech giants across Silicon Valley continue to acquire smaller AI startups through acquihires to strengthen research and development efforts while avoiding regulatory challenges. Apple’s acquisition of Prompt AI is significantly smaller compared to deals like Meta’s 14.3 billion dollar investment in Scale AI and Google’s 2.4 billion dollar acquisition of Windsurf leaders.
Apple has historically avoided large acquisitions, preferring smaller, strategic takeovers. Its largest deal to date remains the 3 billion dollar acquisition of Beats Electronics in 2014. Analysts believe this cautious approach has contributed to Apple’s slower progress in AI, reflected in its 2 percent stock decline this year.
While Apple Intelligence, the company’s generative AI initiative, has faced delays, Apple continues to make strides in computer vision, notably through its Vision Pro headset and iPhone camera capabilities. Industry sources suggest that Prompt AI’s technology and team will likely be integrated into Apple’s HomeKit smart home division.
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