Apple’s Quiet AI Ambition Strengthened by Prompt AI Acquisition

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Despite facing criticism for its perceived inactivity in artificial intelligence advancements compared to its competitors, Apple is strategically broadening its AI portfolio. The tech giant is set to absorb key technology and talent from the startup Prompt AI, which specializes in computer vision.

Strategic Integration with Prompt AI

A recent report reveals that Apple has negotiated to integrate technology and essential team members from Prompt AI rather than acquiring the entire company. This strategic move aims to enhance Apple’s HomeKit smart home ecosystem. Prompt AI’s team was informed about this potential transition last week. Employees who will not be transferred to Apple are being offered roles within Prompt, albeit with reduced compensation. Furthermore, they are encouraged to pursue available positions within the company during this transition phase.

The deal also specifies provisions for investor compensation to some extent although it won’t entirely cover the incurred losses. Founded in 2023 by UC Berkeley alumni, Tete Xiao and Trevor Darrell, Prompt AI made a name with its innovative Seemour system. This computer vision technology, embedded in home security devices, recognizes individuals, animals, and items, providing text-based alerts and notifications.

Interestingly, industry interest in Prompt AI hasn’t been limited to Apple alone; reports indicate that Elon Musk’s xAI and Neuralink have also been in discussions about potential collaborations or acquisitions.