Apple buys Israeli startup Q.ai as the AI race heats up

Apple, Meta and Google are locked in a fierce battle to lead the next wave of AI, and they have recently increased their focus on hardware. With the latest acquisition of the AI ​​startup Q.ai, Apple wants to gain an edge, especially in the audio sector.

As first reported by ReutersApple has acquired Q.ai, an Israeli startup that specializes in imaging and machine learning, specifically technologies that allow devices to interpret whispered speech and enhance audio in noisy environments. Apple has added new AI features to its AirPods, including the live translation capability introduced last year.

The company has also developed technology that detects subtle facial muscle activity, which could help the tech giant improve the Vision Pro headset.

The Financial Times reported that the deal is valued at nearly $2 billion, making it Apple’s second-largest acquisition to date, behind the $3 billion acquisition of Beats Electronics in 2014.

It is notable that this is the second time that CEO Aviad Maizels has sold a company to Apple. In 2013, he sold PrimeSense, a 3D sensing company that played a key role in Apple’s transition from fingerprint sensors to facial recognition on iPhones.

Q.ai launched in 2022 and is backed by Kleiner Perkins, Gradient Ventures and others. The founding team, including Maizels and co-founders Yonatan Wexler and Avi Barliya, will join Apple as part of the acquisition.

The news comes a few hours before Apple’s first quarter results analysts estimate sales at approximately $138 billion. This is also expected to be the company’s strongest iPhone sales growth in four years.