Apple nears deal to acquire talent and technology from computer vision startup Prompt AI

Core Insights - Apple is in late-stage negotiations to acquire talent and technology from computer vision startup Prompt AI, indicating a strategic move to enhance its AI capabilities [1][7][10] Company Overview - Prompt AI, founded in 2023, raised $5 million in a seed round led by AIX and Abstract Ventures, with notable co-founders including CEO Tete Xiao and President Trevor Darrell [3] - The company has a flagship app, Seemour, which enhances home security camera functionalities by detecting specific individuals and objects, but is retiring the app due to business model challenges [5][6] Acquisition Details - Prompt's leadership informed employees about the acquisition, stating that those not joining Apple would receive reduced salaries and be encouraged to apply for other roles [2][4] - The acquisition is part of a trend where tech giants are acquiring AI talent to bolster their research and development while navigating regulatory concerns [7] Financial Context - Investors in Prompt will receive some compensation from the deal but will not be fully reimbursed [4] - Apple's acquisition strategy has historically focused on smaller teams rather than large purchases, with its largest acquisition being Beats Electronics for $3 billion in 2014 [8] Market Position - Analysts suggest that Apple's slower progress in AI may be linked to its reluctance to make significant acquisitions, as evidenced by its stock performance, which is down 2% this year [9] - Despite challenges, Apple has achieved technical success in computer vision, particularly with its Vision Pro mixed reality headset [10]