Apple close to acquiring 11-person AI startup

Apple hasn't really been a major contender in the AI space. In fact, it's been struggling with incorporating AI features in Siri, and is considering taking help from Anthropic, OpenAI, or even Google Gemini. Now, a report claims that Apple is close to acquiring a small startup to support its AI ambitions.

CNBC reports that leadership at computer vision startup Prompt AI has informed its members that Apple is in the process of acquiring top talent and technology from the firm. This is being positioned as an "acquihire" deal, so employees who don't end up joining the Cupertino firm will be paid a reduced salary.

Prompt AI is an 11-person startup that had many potential suitors, including Elon Musk's xAI and Neuralink, but it is Apple that will possibly end up closing the deal, as the tech giant is in late-stage talks. Investors have been told that they will be paid out a portion of Apple's investment, but they won't be "made whole". Existing employees have been requested not to mention the transaction if they search for other jobs.

Prompt AI was founded in 2023 by Phd researcher Tete Xiao and Trevor Darrell, who is also a founder of the Berkeley Artificial Intelligence Research (BAIR) lab. The company's flagship product is the Seemour app, which connects to home security cameras to enable detection of multiple types of moving objects and send alerts and notifications, or answer questions about them.

However, CEO Tete Xiao made a rather interesting announcement in the recent all-hands meeting that while the technology is working well, the business model isn't a great fit. As such, the app is being retired, and user data will be deleted after customers are informed. This suggests that it's actually the backend technology and the talented individuals responsible for building it that Apple is interested in acquiring. We'll likely find out more over the next few days or weeks.

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Posted Sunday 12 October 2025 at 4:42 am AEST (my time).

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