Apple, Meta, and Google are locked in a fierce battle to lead the next wave of AI, and have recently increased their focus on hardware. With its recent acquisition of AI startup Q.ai, Apple aims to gain an edge in the audio space in particular.
As first reported by Reuters, Apple has acquired Israeli startup Q.ai, which specializes in imaging and machine learning, specifically technology that allows devices to interpret whispers and enhance audio in noisy environments. Apple is adding new AI features to AirPods, including the live translation feature it introduced last year.
The company is also developing technology to detect subtle facial muscle activity, which could help the tech giant enhance its Vision Pro headset.
The deal is valued at nearly $2 billion, making it Apple’s second-largest acquisition to date, after buying Beats Electronics for $3 billion in 2014, the Financial Times reported.
Notably, this is the second time CEO Aviad Maizels has sold the company to Apple. In 2013, Apple sold PrimeSense, a 3D sensing company that played a key role in the transition from fingerprint sensors to facial recognition on the iPhone.
Q.ai was founded in 2022 and is backed by Kleiner Perkins, Gradient Ventures, and others. Maisels and his founding team, including co-founders Jonathan Wexler and Avi Barya, will join Apple as part of the acquisition.
The news came hours before Apple’s first-quarter results, where analysts estimate revenue at about $138 billion. It is also expected to be the company’s largest iPhone sales growth in the past four years.
tech crunch event
boston, massachusetts
|
June 23, 2026
