Apple Looks to Acquire Tech and Expertise From Prompt AI

Apple is reportedly preparing to acquire talent and technology from computer vision startup Prompt AI.

The tech giant was in late stage talks on the deal, CNBC reported Friday (Oct. 10), with Prompt’s leadership informing employees of the pending transaction last week.

Those employees were told that those who did not end up joining Apple will be paid a reduced salary, and encouraged to apply for open roles at the company, CNBC added, citing audio from the meeting that was accessed by the network.

Executives also told the employees that Prompt had been approached by other potential buyers, including xAI and Neuralink, both Elon Musk companies.

Founded in 2023, Prompt’s flagship app is Seemour, which connects to home security cameras to help them detect specific people, pets and and objects around a household, and to send alerts and text-based descriptions when unusual activity occurs.

According to CNBC, Prompt Co-Founder and CEO Tete Xiao told employees at the meeting that although the app and the company’s tech were performing well, its business model is struggling.

The company is shuttering the Seemour app, and will inform users their data will be deleted and privacy protected, executives said.

PYMNTS has contacted Apple and Prompt for comment but has not yet gotten a reply.

The report noted that Apple’s planned deal is part of a larger trend of U.S. tech giants employing “acquihires” to pull in artificial intelligence (AI) talent. Other deals in this area include Meta’s $14.3 billion investment in Scale AI that brought with it the company’s founder and other executives, and Google’s $2.4 billion deal for Windsurf’s chief executive and other leaders.

In other Apple AI news, PYMNTS wrote recently about the company’s efforts to create a ChatGPT-like iPhone app to test a revamped version of Siri. Still, the tool is restricted to internal testing only and will not be released to consumers.

“The cautious stance was evident at the iPhone 17 launch, where executives emphasized chip performance and design upgrades,” PYMNTS wrote.

“AI features such as live translation in Messages, FaceTime, and visual recognition in Photos were mentioned briefly, but most had been previewed months earlier at Apple’s developer conference. The shift marked a reversal from the iPhone 16 debut, when AI took center stage before delays slowed deployment.”

Apple’s prolonged testing state could leave it behind when it comes to influencing consumer expectations, with recent reports showing the company’s Siri losing relevance.

“By contrast, rivals are collecting vast consumer data from products already deployed at scale,” PYMNTS added.