According to a recent report by CNBC, tech giant Apple is nearing a significant deal to acquire the “talent and technology” of the innovative computer vision startup Prompt AI. This acquisition appears to be in the final stages, with details emerging about the company's internal communications and implications for its workforce.
In an all-hands meeting held on Thursday, the leadership at Prompt informed employees about the pending transaction with Apple. During this meeting, they outlined the next steps for the team, emphasizing that those who do not transition to Apple will receive a reduced salary and are encouraged to apply for open roles within the company. The executives also communicated to investors that while they would receive some monetary compensation from the deal, they “won’t be made whole,” indicating a less-than-ideal outcome for those who backed the startup.
Employees were instructed to refrain from discussing the acquisition with anyone outside of the company until further notice, particularly when it comes to searching for new job opportunities or updating friends and family on their situation. This level of confidentiality underscores the strategic importance of the acquisition for both Apple and Prompt AI.
Prompt AI's standout product, Seemour, utilizes artificial intelligence to enhance the capabilities of security cameras. This innovative app is designed to detect specific individuals, pets, and other objects within a household, sending alerts and providing text-based descriptions of any unusual activity. According to CNBC, Seemour can also answer questions regarding events captured by the camera, making it a versatile tool for home security.
The strategy of acquiring talent and technology rather than entire companies, known as acquihiring, has become increasingly prevalent in the AI industry. Major tech companies are adopting this approach to sidestep potential scrutiny from regulatory bodies like the FTC. For instance, last year, Microsoft invested approximately $650 million to license technology from Inflection AI while simultaneously acquiring much of its staff. Other tech giants, including Google and Meta, have also executed similar deals, focusing on acquiring key personnel and their expertise.
In the case of Apple and Prompt, it has been reported that the Seemour app will be discontinued post-acquisition. Users will be notified that their data will be deleted and privacy measures will be implemented to protect their information. This move highlights Apple's commitment to user privacy and data protection, particularly in light of the sensitive nature of security camera footage.
Prompt AI has faced challenges in establishing a sustainable business model and had recently attracted interest from other tech entities such as xAI and Neuralink, both of which are affiliated with Elon Musk. While the financial details of Apple’s acquisition remain undisclosed, it is anticipated that further information about the agreement will surface if the deal is finalized.
This acquisition aligns with Apple's ongoing strategy to enhance its technological capabilities and expand its expertise in the rapidly evolving field of artificial intelligence. As the tech landscape continues to shift, such strategic moves will likely play a critical role in shaping the future of the industry.
