Apple appears to be upping the ante in the battle to create AI-powered wearables with a deal to acquire Israeli startup Q.AI.
While the exact figures have not been verified at this stage — Reuters suggested it was worth $1.6 billion while the Financial Times reported that the transaction valued Q.AI at nearly $2 billion — the deal itself has, with both parties confirming it via statements issued to the press.
The deal was backed by venture capital firms Matter Venture Partners, Kleiner Perkins, Spark Capital, Exor and GV, formerly Google Ventures, with the latter describing it as “Apple’s second largest acquisition in its history” in a blog post.
That places it behind only the purchase of Beats Music and Beats Electronics for $3 billion in 2014.
What Apple is getting for its money isn’t entirely clear. Q.AI’s website provides few clues beyond this broad statement: “In a world full of noise we craft a new kind of quiet.”
Pitchbook described the Tel Aviv firm as a “developer of a communication enhancement technology designed to revolutionize human interaction” while the FT claimed that patents filed by Q.AI showed its tech “being used in headphones or glasses, using ‘facial skin micro movements’ to communicate without talking.”
The company is also understood to have been researching applications of machine learning that help devices understand whispered speech, enhancing audio in challenging environments.
This has led to speculation as to what might be in store. Whatever is planned, it seems that the deal is aimed at bolstering Apple’s wearables portfolio, where the likes of Meta has forged ahead with its smart glasses.
Investor GV pointed out: “Apple has always been the master of the ‘invisible interface’ — the technology that feels like an extension of yourself,” and added that Q.AI’s work had the potential to fundamentally change how we connect with each other.
Reflecting on the deal, Q.AI CEO Aviad Maizels said in a statement: “Joining Apple opens extraordinary possibilities for pushing boundaries and realizing the full potential of what we’ve created, and we’re thrilled to bring these experiences to people everywhere.”
Johny Srouji, Apple’s senior vice president of hardware technologies, described Q.AI as “a remarkable company that is pioneering new and creative ways to use imaging and machine learning.” He added: “We’re thrilled to acquire the company, with Aviad at the helm, and are even more excited for what’s to come.”
Maizels previously cofounded PrimeSense, which Apple acquired in 2013. PrimeSense’s sensing tech was used in the development of the iPhone’s Face ID biometric log-in system.
