Apple is reportedly finalizing a deal to acquire Prompt AI, a computer vision startup that specializes in smart home automation and image recognition. The deal, first reported by CNBC, positions Apple ahead of Elon Musk’s xAI and Neuralink, both of which were also interested in purchasing the company.
Founded in 2023 by UC Berkeley PhD Tete Xiao and AI researcher Trevor Darrell, Prompt AI developed Seemour, an application that enhances home security cameras with artificial intelligence. Seemour can identify specific people, pets, and objects, sending users real-time alerts and descriptive messages about unusual activity. Despite strong technology, the company struggled with monetization, leading to its decision to shut down the Seemour app and delete user data to maintain privacy protections.
Prompt AI’s leadership informed employees in an all-hands meeting that the company is nearing the final stage of negotiations with Apple. Those joining Apple will transition into new roles within the company, while others will receive reduced pay and be encouraged to apply for open positions. Investors will reportedly receive partial returns but not the full value of their initial investment.
For Apple, the acquisition aligns with its long-standing strategy of acquiring smaller, highly focused startups to strengthen its internal AI ecosystem. The company typically prefers “acqui-hires” that emphasize talent and proprietary technology rather than high-value takeovers. Apple’s largest-ever purchase remains its $3 billion acquisition of Beats Electronics in 2014, a deal that eventually evolved into Apple Music.
The addition of Prompt AI’s talent and tools is expected to benefit Apple’s HomeKit platform. Integrating Seemour’s advanced object and person recognition could help Apple transform its smart home products into more adaptive, context-aware systems. HomeKit’s future could see more seamless automation, where devices anticipate user needs through real-time environmental understanding rather than relying solely on preset routines.
The move also highlights Apple’s ongoing effort to close the AI gap with competitors like Google, Microsoft, and Meta. Apple’s own generative AI system, “Apple Intelligence,” faced delays and muted reception earlier this year, though the company’s computer vision technology continues to receive praise, particularly in the Vision Pro headset.
While the acquisition’s value has not been disclosed, Apple’s motivation is clear: to reinforce its AI foundation with top-tier researchers while keeping development privacy-focused and tightly integrated across devices. As larger tech rivals make billion-dollar bets on AI, Apple remains consistent with its quieter, incremental approach, preferring precise engineering over spectacle.
(via CNBC)
