Apple to acquire AI start-up Prompt: What does it do?
What's the story
Apple is said to be in advanced talks to acquire computer vision start-up Prompt AI. The deal would see Apple acquire the company's technology and top talent. During an all-hands meeting on Thursday, Prompt's leadership informed employees about the pending transaction. It noted that those not joining Apple would be paid a reduced salary, and encouraged to apply for open roles at the company, CNBC reported.
Company profile
Who are the founders of Prompt AI?
Prompt AI was co-founded by CEO Tete Xiao and President Trevor Darrell. Xiao is a renowned AI researcher with a PhD in computer science from UC Berkeley, while Darrell is the founder of the Berkeley Artificial Intelligence Research (BAIR) lab. The company had raised $5 million in seed funding in 2023 from AIX and Abstract Ventures.
App details
The company is shutting down its flagship app, Seemour
Prompt AI's flagship app, Seemour, connects with home security cameras to provide advanced features. The tech enables cameras to recognize specific people, pets or other objects in a household and send alerts or text-based descriptions of unusual activity. However, at the meeting, Xiao said while their tech and Seemour were working well, the business model wasn't. Hence, they are retiring Seemour and informing users about data deletion/privacy protection plans.
Acquisition approach
Apple's acquisition strategy
Apple has long been known for its preference for smaller acquisitions. Its biggest purchase in its 50-year history was the $3 billion deal for Beats Electronics in 2014. The company prefers to quietly acquire smaller teams and use their talent and technology to develop the features for its product lines. Some analysts have attributed Apple's relatively slow progress in AI to this cautious acquisition strategy.