As competition intensifies among Apple, Meta, and Google to define the next phase of artificial intelligence, hardware has emerged as a critical battleground. Apple’s acquisition of Israeli startup Q.ai reflects that shift, strengthening its position in audio and device-level AI.
The deal was first reported by Reuters. Q.ai is known for its work in imaging and machine learning, particularly technology that enables devices to interpret whispered or silent speech and improve audio clarity in noisy environments. Apple has been steadily expanding AI-powered features across its hardware lineup, including recent additions to AirPods such as live translation.
The startup’s technology also aligns with Apple’s broader ambitions in spatial computing. Q.ai has developed systems capable of detecting subtle facial muscle movements, a capability that could enhance experiences on devices like the Vision Pro headset.
While Apple did not officially disclose the purchase price, the Financial Times reported that the transaction values Q.ai at close to $2 billion. If accurate, this would rank as Apple’s second-largest acquisition, trailing only its $3 billion purchase of Beats Electronics in 2014.
The acquisition also marks a return to Apple for Q.ai CEO Aviad Maizels. In 2013, Maizels sold PrimeSense to Apple, a 3D-sensing company that later played a foundational role in the development of Face ID on iPhones.
Founded in 2022, Q.ai raised funding from firms including Kleiner Perkins, Gradient Ventures, Google Ventures, and Spark Capital. As part of the deal, Maizels and co-founders Yonatan Wexler and Avi Barliya will join Apple.
Johny Srouji, Apple’s senior vice president of hardware technologies, who oversees the company’s custom silicon and Israeli operations, praised the acquisition in comments to YNet News, calling Q “an exceptional company, pioneering new and creative ways to use imaging and machine learning technologies.” He added that Apple is “even more excited about what lies ahead.”
The announcement comes just ahead of Apple’s quarterly earnings report, where analysts are forecasting revenue of approximately $138 billion. The company is also expected to post its strongest iPhone sales growth in four years.
With Q.ai’s expertise now in-house, Apple appears to be deepening its focus on tightly integrating AI capabilities directly into its devices—an approach that could further differentiate its ecosystem as AI competition increasingly extends beyond software alone.
