Apple Nears Acquisition of AI Startup Prompt AI to Bolster Smart Home Ambitions

Apple Inc. is finalizing a strategic acquisition of Prompt AI, a fledgling artificial intelligence startup specializing in computer vision and DEEP learning. The deal, first reported by CNBC, underscores Apple's targeted approach to AI development—prioritizing talent acquisition over splashy, billion-dollar buyouts.

Prompt AI's leadership informed staff of the impending deal during an all-hands meeting, noting some employees would transition to Apple while others would receive modified compensation packages. The startup had drawn interest from Elon Musk's xAI and Neuralink, but Apple's bid stood out for its dual focus on technological assets and research expertise.

Founded in 2023 by UC Berkeley PhD Tete Xiao and BAIR Lab co-founder Trevor Darrell, Prompt AI secured $5 million in seed funding last year from AIX and Abstract Ventures. The startup's specialization in computer vision aligns with Apple's quiet investments in AI infrastructure, particularly for smart home applications.