Apple Acquires Israeli Audio AI Startup Q.ai Before Q4 Earnings

Apple has acquired Q.ai, an Israeli startup focused on artificial intelligence technology for audio, the Financial Times reported on Thursday (Jan. 29), as the company prepares to report fiscal fourth-quarter results later Thursday amid growing scrutiny of its AI strategy.

Apple did not disclose financial terms of the deal, according to the FT report. The acquisition comes at a moment when the company’s hardware business remains heavily dependent on the iPhone, while questions persist about whether Apple has moved quickly enough to match rivals in generative AI and conversational assistants.

Q.ai’s founding team will reportedly join Apple, including CEO Aviad Maizels, who previously founded PrimeSense, a three-dimensional sensing company Apple acquired in 2013. That deal enabled Apple to shift from fingerprint authentication to facial recognition across its iPhone lineup, reshaping how users interact with Apple devices.

Apple said Q.ai has developed machine learning techniques that help devices understand whispered speech and enhance audio quality in difficult environments. The company did not specify how the technology would be deployed, though the capabilities align with Apple’s expanding focus on voice interaction, ambient computing and hands-free control across devices such as AirPods and iPhones

While iPhone demand has remained resilient, Apple has been viewed as trailing peers such as Google and Microsoft in rolling out consumer-facing generative AI products. That perception has increasingly centered on Siri. Once an early leader in voice assistants, Siri has lagged behind newer AI chatbots in conversational ability and reasoning.

As reported by PYMNTS, Apple plans to turn Siri into an AI chatbot powered by Google’s Gemini models, marking a significant shift toward integrating external large language models into Apple’s ecosystem. This highlights the urgency Apple faces in modernizing its AI stack while maintaining tight control over privacy and user experience.

Johny Srouji, Apple’s senior vice president of hardware technologies, described Q.ai as pioneering new ways to apply imaging and machine learning and said the acquisition fits Apple’s long-term technology roadmap. Q.ai co-founders Yonatan Wexler and Avi Barliya will also join Apple, the companies said.

Apple recently made leadership changes in its artificial intelligence team, with longtime machine learning chief John Giannandrea stepping down and Amar Subramanya, a veteran who worked on Google’s Gemini Assistant, named vice president of AI to spearhead Apple’s next generation of models and Siri enhancements.

The acquisition lands as Apple’s fourth-quarter results are expected to be scrutinized closely later today for signals on whether AI-related features can reinvigorate growth as iPhone momentum shows signs of plateauing. While services and accessories have helped offset hardware cyclicality, the iPhone remains Apple’s largest revenue driver, and investors are watching for indications that AI-driven upgrades can spur a new replacement cycle.

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