Apple Beats xAI to Acquire Prompt AI Talent and Tech

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Key Takeaways:

Apple Nearing Purchase of Prompt AI: Apple is in advanced talks to acquire Prompt AI, boosting its Apple Intelligence and HomeKit Secure Video features to better rival xAI and Google.
Acqui-hire Strategy to Close AI Gap: To counter criticism of its slow AI rollout, Apple is prioritizing talent acquisitions, aiming to absorb Prompt AI’s 11-member team rather than full company takeovers.
Prompt AI’s Seemour Aligns with Apple’s Vision: The company’s Seemour platform, built for AI-driven home security, aligns closely with HomeKit Secure Video, enhancing detection accuracy and real-time event processing.
Business Model Pressures Prompt Transition: Prompt AI’s leadership admitted its business model wasn’t sustainable, leading to employee transitions to Apple roles, though some staff face pay cuts or job uncertainty.
Apple Expands AI Bench Through Small Acquisitions: With Prompt AI joining TrueMeeting, WhyLabs, and Mayday Labs, Apple continues a focused push to grow its AI talent base and stay competitive against Meta and OpenAI.

Apple is apparently very close to securing a deal with computer vision startup Prompt AI, outpacing Elon Musk’s xAI in the process. If everything goes right, this acquisition deal could strengthen Apple’s AI capabilities for Apple Intelligence and HomeKit Secure Video, areas where the company has been struggling to keep up with rivals.

Apple Pushes to Catch Up in AI Race

Apple has faced criticism for lagging in AI due to the slow rollout of Apple Intelligence and Siri delays. To catch up, it’s turning to acqui-hires. CNBC reports Apple is in late-stage talks to bring Prompt AI’s 11-person team and tech on board, focusing on talent rather than buying the entire company.

Seemour to Shut Down

Prompt AI’s core product, Seemour, enhances home security cameras with AI features like person, pet, and object detection, and can even generate text descriptions for activity reports. These capabilities closely mirror HomeKit Secure Video functions, making the startup’s tech a natural fit for Apple.

Prompt AI CEO Tete Xiao reportedly told employees that despite strong technology, the business model wasn’t sustainable. Employees joining Apple will transition into new roles, while others will receive reduced salaries or apply elsewhere within the company.

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Apple’s Growing AI Portfolio

Prompt AI joins a series of recent Apple AI acquisitions, including TrueMeeting, WhyLabs, and Mayday Labs. CEO Tim Cook confirmed seven acquisitions in 2024, aimed at accelerating Apple’s AI roadmap as it competes for talent with tech giants like Meta.

Do you think Apple’s acqui-hire strategy will help it catch up in the AI race? Share your thoughts in the comments below.

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