Apple is reportedly in the final stages of acquiring key talent and proprietary technology from Prompt AI, a San Francisco-based startup specializing in computer vision and visual intelligence.
The move signals Apple’s growing interest in enhancing its AI capabilities, particularly in the domain of real-time image analysis and smart camera applications.
Prompt AI’s Strategic Acquisition by Apple to Strengthen AI Capabilities
Prompt AI was founded in 2023 by Tete Xiao, a noted AI researcher, and Trevor Darrell, the founder of the Berkeley Artificial Intelligence Research (BAIR) lab.
The company’s flagship product, Seemour, is a visual intelligence platform designed for home security cameras.
It enables advanced image recognition, contextual alerts, and real-time decision-making using edge AI models.
Apple’s interest in Prompt AI appears to be focused on both its cutting-edge technology and its engineering talent.
According to CNBC, the deal is structured to bring Prompt’s core team into Apple, while also integrating its visual intelligence tools into Apple’s broader AI ecosystem.
The acquisition is expected to bolster Apple’s efforts in enhancing camera-based features across its devices, including iPhones, iPads, and future AR/VR products.
Internal Communication and Transition Plans
Prompt AI reportedly informed its employees about the pending deal during an all-hands meeting held on Thursday.
Employees who are not joining Apple will receive reduced compensation. They have also been encouraged to apply for open roles at Apple.
The startup has also instructed staff to avoid publicly referencing Apple until the deal is finalized.
While the financial terms of the acquisition have not been disclosed, sources indicate that Prompt’s investors will receive partial payouts.
However, they are unlikely to recover their full investment, suggesting that the deal is more talent- and technology-driven than financially lucrative for early backers.
Background and Funding History
Prompt AI raised approximately $6 million in seed funding from AIX Ventures, Abstract Ventures, and several angel investors.
The company quickly gained attention for delivering high-performance visual intelligence solutions.
Its low-latency technology made it ideal for consumer-grade hardware and smart home applications.
The startup’s rapid growth and technical depth made it an attractive target for Apple. The tech giant has been steadily expanding its AI research and development footprint.
Apple’s recent hires and acquisitions in the AI space show a clear strategic push.
The company aims to compete more aggressively with rivals like Google and Microsoft in intelligent computing.
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