Apple acquires Q.ai for nearly $2B
Apple has acquired Q.ai, an Israeli startup specializing in imaging and machine-learning technologies, for nearly $2 billion to advance its AI efforts in audio processing amid competition with Meta and Google.
Apple, Meta, and Google compete intensely in the AI sector, with recent emphasis on hardware integration. Apple’s purchase of Q.ai targets enhancements in audio capabilities. Q.ai develops technologies that allow devices to interpret whispered speech and improve audio quality in noisy environments. Reuters first reported the acquisition.
Apple integrates AI features into its AirPods, such as the live-translation capability introduced last year. The company also created technology to detect subtle facial muscle activity, applicable to improving its Vision Pro headset.
The Financial Times valued the deal at nearly $2 billion, positioning it as Apple’s second-largest acquisition after the $3 billion purchase of Beats Electronics in 2014. This transaction marks the second time CEO Aviad Maizels has sold a company to Apple.
In 2013, Maizels sold PrimeSense, a 3D-sensing firm that contributed to Apple’s shift from fingerprint sensors to facial recognition on iPhones. Q.ai launched in 2022 and received backing from investors including Kleiner Perkins and Gradient Ventures.
The founding team of Q.ai, comprising CEO Aviad Maizels, co-founders Yonatan Wexler, and Avi Barliya, will join Apple following the acquisition. The announcement occurred hours before Apple’s first quarterly earnings report.