Apple has acquired Israeli startup Q.ai for nearly $2 billion, marking its second-largest deal after the $3 billion purchase of Beats Electronics in 2014. The acquisition intensifies competition with Meta and Google in AI, where all three companies have shifted focus to hardware.
Q.ai specializes in imaging and machine learning technologies that allow devices to interpret whispered speech and improve audio quality in noisy environments. Apple plans to integrate these capabilities, building on recent AI enhancements to its AirPods, such as the live-translation feature introduced last year. The company has also developed technology to detect subtle facial muscle activity, potentially improving its Vision Pro headset.
This marks the second time Q.ai CEO Aviad Maizels has sold a company to Apple. In 2013, he sold PrimeSense, a 3D-sensing firm that aided Apple’s shift from fingerprint sensors to facial recognition on iPhones.
Launched in 2022, Q.ai received backing from investors including Kleiner Perkins and Gradient Ventures. Its founding team—Aviad Maizels, Yonatan Wexler, and Avi Barliya—will join Apple following the deal.
The announcement preceded Apple’s first quarterly earnings report by a few hours. Analysts project revenue of about $138 billion, with iPhone sales expected to show the strongest growth in four years.
