Apple has acquired Q.ai, an Israel-born startup developing artificial intelligence technology for audio applications.
The acquisition was confirmed by GV (formerly Google Ventures), the venture capital arm of Google parent Alphabet. Without disclosing the figure involved, GV said the deal marks “Apple’s second-largest acquisition in its history.”
Reuters reported, citing a source familiar with the matter, that the deal with Apple valued the startup at $1.6 billion. Separately, the Financial Times reported, citing people familiar with the terms, that the deal valued Q.ai at “close to $2bn.”
To date, Apple’s biggest acquisition is its $3 billion purchase of Beats in 2014.
Meanwhile, GV is among Q.ai’s former backers alongside Exor, Israel’s Aleph, Corner Ventures and Ex Ventures, according to data from Pitchbook. GV first co-led Q.ai’s inception Seed round in 2022 with Aleph, then joined the startup’s Series A in 2023.
GV’s Tom Hulme said in a blog post on Thursday (January 29) that Q.ai has operated in stealth since its inception. Q.ai faced operational challenges during the Israel-Hamas war. Following the October 7, 2023 attack, about 30% of the company’s employees were drafted into military service, Hulme wrote. Team members conducted meetings from bomb shelters during the conflict while continuing development work.
Hulme said: “By joining Apple, Q’s technology has the potential to reach billions of people, fundamentally changing how we connect with one another.”
Reuters reported that the startup’s 100 employees will join Apple, including CEO Aviad Maizels and co-founders Yonatan Wexler and Avi Barliya.
“By joining Apple, Q’s technology has the potential to reach billions of people, fundamentally changing how we connect with one another.”
Tom Hulme, GV
Maizels previously founded PrimeSense, a three-dimensional sensing company that Apple acquired in 2013. That deal helped Apple shift from fingerprint sensors on iPhones to Face ID technology.
“Joining Apple opens extraordinary possibilities for pushing boundaries and realizing the full potential of what we’ve created, and we’re thrilled to bring these experiences to people everywhere.”
Aviad Maizels, Q.ai
Maizels said in a statement cited by Reuters: “Joining Apple opens extraordinary possibilities for pushing boundaries and realizing the full potential of what we’ve created, and we’re thrilled to bring these experiences to people everywhere.”
Johny Srouji, Apple’s senior vice president of hardware technologies, said in a statement cited by the news outlet that Q.ai “is a remarkable company that is pioneering new and creative ways to use imaging and machine learning.”
“We’re thrilled to acquire the company, with Aviad at the helm, and are even more excited for what’s to come.”
“We’re thrilled to acquire the company, with Aviad at the helm, and are even more excited for what’s to come.”
Johny Srouji, Apple
The acquisition comes as Apple continues to build out AI capabilities across its hardware products. The company introduced real-time speech translation features to its AirPods earbuds last year, allowing the device to translate speech between languages.
Q.ai’s technology is able to analyze facial expressions to understand “silent speech.” The FT said patents filed by the startup show its tech being used in headphones or glasses using “facial skin micro movements” to communicate without talking.
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