Apple is nearing a deal to acquire engineers and proprietary technology from the early-stage computer vision startup Prompt AI, marking another calculated move in its deliberate expansion into advanced artificial intelligence. The deal, discussed during an internal all-hands meeting at Prompt this week, reinforces Apple’s preference for small, targeted acquisitions designed to bring top talent and technology into its ecosystem without drawing regulatory attention.

Prompt AI, founded in 2023 by UC Berkeley AI researcher Tete Xiao and Trevor Darrell, founder of the Berkeley Artificial Intelligence Research (BAIR) lab, built cutting-edge visual recognition systems. Their flagship app, Seemour, connected with home security cameras to identify and describe people, pets, and objects in real time. It enabled conversational interaction with smart devices, allowing users to ask natural questions such as “Who was in the kitchen this morning?” or “Did the dog leave the house?”

At an internal meeting, Prompt executives told employees that although the technology was successful, the business model was not sustainable. The Seemour app will be retired, and users will be informed that their data will be deleted with full privacy protections. Employees not joining Apple will receive reduced salaries but are encouraged to apply for open roles at other companies. This move reflects Apple’s ongoing strategy of acquiring smaller teams through talent-driven transactions.

This acquisition underscores Apple’s quiet but persistent effort to strengthen its artificial intelligence infrastructure. Despite its massive financial power, Apple rarely pursues large-scale acquisitions. Its largest purchase remains the $3 billion deal for Beats Electronics in 2014. By comparison, rivals such as Meta and Google have made multibillion-dollar AI investments. Apple’s deal for Prompt AI is smaller in scale but strategically significant, allowing it to absorb intellectual property and expertise rather than chase valuations.

Prompt AI’s investors are expected to recover part of their funding, though not the full amount. Still, the acquisition aligns with Apple’s long-term strategy of acquiring teams whose research can directly enhance its core technology portfolio.

Apple’s renewed focus on AI comes amid growing pressure from investors and analysts who argue the company has been slow to embrace generative AI. Its “Apple Intelligence” initiative has faced delays and mixed reactions. However, Apple’s progress in computer vision is more substantial, especially in its Vision Pro headset and iPhone photo recognition tools. Integrating Prompt AI’s technology could dramatically boost HomeKit and on-device visual intelligence, creating smarter, context-aware experiences for users.

Industry insiders expect Prompt AI’s team to join Apple’s HomeKit and Vision Pro divisions, focusing on visual understanding, smart home recognition, and contextual processing. The acquisition may also help Apple reinforce its privacy-first approach to artificial intelligence by prioritizing device-side computation instead of cloud-based systems.

As the global AI race accelerates, Apple’s selective acquisitions could become its competitive advantage. Rather than following the trend of massive AI purchases, Apple is building a network of tightly integrated innovations that serve its ecosystem holistically. By combining its design discipline, privacy standards, and technical depth, Apple is positioning itself to redefine how consumers interact with artificial intelligence in their everyday lives.

The Bigger Picture:
Apple’s acquisition of Prompt AI highlights a defining moment in its artificial intelligence strategy. By absorbing top-tier computer vision engineers and advanced recognition technology, Apple positions itself to enhance smart home experiences, mixed reality capabilities, and iPhone intelligence. The move reflects Apple’s focus on subtle innovation rather than flashy spending, emphasizing privacy, on-device learning, and ecosystem harmony. As competitors race toward cloud-heavy AI platforms, Apple’s approach could usher in a new era of personal and secure AI experiences that feel natural, seamless, and deeply human.

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