According to CNBC, Apple is in "final-stage negotiations" to acquire computer vision startup Prompt AI, aiming to acquire the company's core technology and team. Prompt leadership has informed all employees of the deal's progress in a company-wide meeting. Employees who aren't joining Apple will receive compensation or be eligible to apply for other positions at Apple. They have also been asked not to publicly mention Apple. Investors will only receive a partial return on their investment in this transaction, but not a full one.
Founded in 2023, Prompt AI previously secured $5 million in seed funding. Its core product, the Seemour app, uses home security cameras to identify people, pets, and objects, providing anomaly alerts, image descriptions, and Q&A. Despite its technological sophistication, the CEO acknowledged that the business model hasn't met expectations and plans to decommission Seemour and delete user data to ensure privacy.
Compared to Silicon Valley giants' multi-billion dollar acquisitions of AI teams (such as Meta's $14.3 billion investment in Scale AI), Apple's acquisition is smaller, reflecting its typically cautious approach. Its largest acquisition was the $3 billion acquisition of Beats in 2014, preferring to quietly integrate smaller teams. Analysts point to Apple's slow progress in generative AI as a result of its conservative strategy, leading to a 2% drop in its stock price this year, lagging behind its tech peers.
Although "Apple Intelligence" has received lukewarm reviews, Apple has made breakthroughs in computer vision. Prompt technology is expected to be integrated into HomeKit, further strengthening its home security and sensing ecosystem.
