TLDR
- Apple eyes Prompt AI in low-key move to boost computer vision power
- Apple targets Prompt AI talent in stealth bid to enhance HomeKit, Vision Pro
- Apple’s stock dips as Prompt AI deal signals new computer vision push
- Apple pursues Prompt AI acquihire to fuel device-based AI innovation
- Apple bets on Prompt AI team to sharpen its edge in computer vision
Apple(AAPL) stock fell 3.45% on October 10, closing at $245.27, marking a sharp single-day drop. After the bell, shares continued sliding to $244.50, reflecting persistent pressure.
The decline followed reports of Apple’s acquisition move targeting computer vision startup Prompt AI.
Apple is now in advanced negotiations to acquire Prompt AI’s talent and technology in a strategic acquihire. The company aims to integrate Prompt’s 11-person team and proprietary computer vision platform—executives from Prompt informed staff of the imminent transition during a recent all-hands meeting.
This acquisition aligns with Apple’s approach of acquiring smaller firms to enhance product features, rather than dominating markets. While competitors pursue billion-dollar deals, Apple continues to prioritize focused, low-profile talent acquisitions. The company expects these smaller integrations to improve core technologies without increasing regulatory scrutiny.
Prompt AI Technology to Support Apple’s Computer Vision Goals
Founded in 2023, Prompt AI specialized in computer vision for smart home systems, quickly developing advanced recognition capabilities. Its flagship app, Seemour, connected with home security cameras to identify people, pets, and objects. The app could send detailed alerts and answer questions about events around the home.
Apple seeks to use Prompt’s capabilities to enhance its HomeKit and Vision Pro platforms, both reliant on advanced image recognition. The startup’s team includes leading researchers like CEO Tete Xiao and President Trevor Darrell, both with deep roots in AI academia. The technology fits into Apple’s growing reliance on device-based machine learning.
Although the Seemour app functioned well, Prompt executives admitted the business model was not sustainable. As part of the transition, Prompt will shut down the app and erase user data to maintain privacy. Apple has not yet publicly confirmed the deal or its timeline for integration.
Competitive Landscape and Apple’s Strategic Positioning
Prompt AI reportedly received interest from other major players, including Elon Musk’s xAI and Neuralink. Despite competing offers, Prompt moved forward with Apple due to alignment in goals and execution. The deal reflects Apple’s ongoing effort to acquire talent without incurring excessive acquisition costs.
Meta and Google recently made multi-billion-dollar investments to expand their AI footprints more aggressively. Apple continues to chart a conservative course, maintaining its operational focus while quietly building internal capabilities. The company typically acquires one startup every few weeks, with a focus on long-term value.
Apple’s recent moves suggest a renewed focus on AI amid criticism over delayed progress in generative systems. While Apple Intelligence faces delays, the company continues to refine computer vision tools. This acquisition may help close performance gaps while positioning Apple for future AI-enhanced product releases.
