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

Apple, Meta, and Google are locked in a fierce battle to lead the next wave of AI, and they’ve recently increased their focus on hardware. With its recent acquisition of AI startup Q.ai, Apple aims to gain an advantage, especially in the audio sector.

As first reported by Reuters, Apple has acquired Q.ai, an Israeli startup that specializes in imaging and machine learning, particularly technologies that enable devices to interpret whispered speech and improve audio in noisy environments. Apple is adding new AI features to its AirPods, including the live translation capability it introduced last year.

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

The Financial Times reported that the value of the deal is estimated at about $2 billion, making it Apple’s second largest acquisition to date, after buying Beats Electronics for $3 billion in 2014.

It is worth noting that this is the second time that CEO Aviad Mayzeles 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 was launched in 2022 and is backed by Kleiner Perkins, Gradient Ventures, and others. Its founding team, including Maizels and co-founders Yonatan Wexler and Avi Barliya, will join Apple as part of the acquisition.

This news comes a few hours before Apple announced its first quarterly profits, whose revenues analysts estimate at about $138 billion. This is also expected to be the company’s strongest iPhone sales growth in four years.