Apple, often criticized for trailing behind its competitors in the AI race, is reportedly taking another major step to strengthen its artificial intelligence division — this time through a potential acqui-hire of the startup Prompt AI.
According to recent reports, Apple is in final-stage negotiations to bring in Prompt AI’s team and technology rather than purchase the entire company outright. During a company-wide meeting, the startup’s leaders informed its 11 employees about the deal. Those joining Apple will transition into new roles, while others will receive smaller compensation packages and be encouraged to apply for other open positions at Apple. Investors from Prompt AI’s $5 million seed round in 2023 are expected to recover only part of their funds.
Prompt AI’s main product, Seemour, uses AI to improve home security cameras by offering person, pet, and object detection along with automatic activity summaries. The technology bears similarities to Apple’s HomeKit Secure Video, which already provides facial recognition, but Apple is believed to be more interested in adapting Prompt AI’s expertise for on-device intelligence on iPhones and other Apple devices.
Prompt AI’s CEO Tete Xiao and President Trevor Darrel — both prominent AI researchers, with Darrel being the founder of the Berkeley Artificial Intelligence Research (BAIR) Lab — decided to shut down Seemour after struggling to build a sustainable business model. Users will soon be notified that their data will be deleted.
Apple wasn’t the only interested party. Both Elon Musk’s xAI and Neuralink reportedly explored potential deals with Prompt AI before Apple advanced further in talks.
If finalized, the move would mark another addition to Apple’s growing list of AI-related acquisitions. Earlier in 2024, Apple purchased TrueMeeting, whose facial-scanning technology helped improve Vision Pro Personas, as well as WhyLabs, a company focused on reducing AI hallucinations. The company also bought Mayday Labs to enhance AI-driven calendar features.
In July, CEO Tim Cook confirmed that Apple had already acquired seven companies in 2024, emphasizing that while none were major takeovers, each was aimed at “accelerating our roadmap.”
While Apple continues to rebuild its AI division through small, strategic purchases, internal discussions are reportedly ongoing about larger-scale acquisitions, including Mistral and Perplexity AI, which could cost billions.
As the competition intensifies — with companies like Meta aggressively hiring AI talent — Apple’s approach reflects a clear strategy: quietly strengthen its AI capabilities through targeted acqui-hires and focused innovation rather than splashy billion-dollar deals.
