Apple Acquires Israeli AI Startup Q.ai for Nearly $2 Billion
Apple has acquired Israeli technology company Q.ai, securing a leading position in the competition for artificial intelligence in wearable devices. The deal reaches a value of nearly two billion dollars, making it the second-largest acquisition in the iPhone maker’s corporate history. Reuters first reported the transaction.
The startup, founded in 2022 in Tel Aviv, has developed technologies that can interpret whispered speech, enhance audio in loud environments, and analyze micro-movements of facial skin. These capabilities enable users to communicate with AI assistants through silent speech without having to speak audible words.
Q.ai’s core competency lies in combining image processing and machine learning. The company has developed procedures that capture subtle activities of facial muscles and derive communication intentions from them. Apple is already increasingly integrating AI functions into its audio products, including a live translation feature for AirPods that was introduced last year. The newly acquired technologies could significantly enhance both the headphone product line and the Vision Pro headset. Filed patents show that Q.ai’s solutions are particularly suited for use in headphones and smart glasses, where they enable non-verbal control of AI assistants.
Strategic Background and Historical Parallels
For CEO Aviad Maizels, the transaction marks the second time he has sold a company to Apple. Back in 2013, the company acquired his then-company PrimeSense, which specialized in 3D sensing technology. This acquisition played a crucial role in the transition from fingerprint sensors to facial recognition on iPhones.
The current acquisition ranks behind the purchase of Beats Electronics, for which Apple paid three billion dollars in 2014. While Meta already offers smart glasses under the Ray-Ban brand that enable users to have conversations with artificial intelligence, Google and Snap are preparing competing devices that are expected to launch later this year.
Q.ai’s entire founding team is transitioning to Apple as part of the acquisition. In addition to Maizels, this includes co-founders Yonatan Wexler and Avi Barliya. The startup had received funding from renowned investors, including Kleiner Perkins, Gradient Ventures, and GV, the former Google Ventures. The filed patent applications document how the technology can be deployed in various wearable devices while opening up new forms of human-machine interaction.
Intense Competition for Wearable AI Assistants
Apple, Meta, and Google are engaged in an intense race for leadership in the next generation of artificial intelligence. All three technology companies have recently shifted their focus more strongly toward hardware integrations. The acquisition of Q.ai gives Apple a strategic advantage, particularly in the audio sector and smart glasses. The market for wearable AI assistants is developing into a central battleground that will determine which platforms will dominate everyday interaction between humans and artificial intelligence.
The announcement of the acquisition comes just hours before Apple’s release of quarterly earnings. Analysts forecast revenue of approximately 138 billion dollars for the past quarter. Additionally, observers expect the strongest growth in iPhone sales in four years. The investment in Q.ai underscores Apple’s strategy of consolidating its position in the AI competition through targeted acquisitions of specialized technology companies while simultaneously opening up new product categories.
