Apple is reportedly in the final stages of acquiring technology and key staff from Prompt AI, a San Francisco-based computer vision startup, according to several sources familiar with the matter and recent news reports. Rather than a traditional full-company acquisition, Apple is expected to absorb Prompt AI’s engineering team and software assets—a move that industry observers note is increasingly common as tech giants race to advance their artificial intelligence (AI) capabilities.
Founded in 2023 by Tete Xiao and Trevor Darrell, researchers from UC Berkeley, Prompt AI gained attention for its flagship Seemour app. The app connects with home security cameras, leveraging proprietary computer vision algorithms to identify people, pets, and objects while generating detailed activity summaries for users. The technology operated as intended, but despite its innovation, Prompt AI reportedly struggled to form a sustainable business model, resulting in the planned discontinuation of Seemour and an impending wind-down of company operations.
During a recent all-hands meeting reviewed by reporters, Prompt AI leaders informed employees about the approaching deal with Apple. Staffers not transitioning to Apple were told they would receive a reduced salary and were encouraged to apply for open roles at Apple. Employees were also instructed to be discreet about the ongoing discussions, especially while job hunting or speaking with peers. Investors in Prompt AI are expected to see some return from the transaction, although specifics vary by individual case and the total payout will fall short of initial investments.
The acquisition process was competitive, as other companies had also reportedly approached Prompt AI about possible acquisition deals. The company was initially backed through a seed round by unnamed investors. Now, as operations wind down, Prompt AI will notify users that all stored data will be deleted in full compliance with stringent privacy policies, echoing Apple’s own emphasis on user privacy and on-device data processing (source).
If completed, Prompt AI’s engineering team and technology will likely reinforce Apple’s HomeKit smart home platform and enhance device-based AI features. The integration aligns with Apple’s strategy to strengthen its competitive position in the AI sector. Apple has significantly increased AI-related spending and reorganized teams to accelerate research and product development, as highlighted by CEO Tim Cook’s recent comments about being open to AI-focused mergers and acquisitions.
The financial details of the Prompt AI deal remain undisclosed. Sources characterize the transaction as a targeted acqui-hire intended to boost Apple’s in-house AI and computer vision expertise rather than a headline-grabbing mega-acquisition. The arrangement reflects a larger trend, as major technology companies—including Meta and OpenAI—intensify their investments in AI and related hardware, such as OpenAI’s collaboration with former Apple design chief Jony Ive.
This news of Apple’s anticipated acquisition of Prompt AI comes shortly after reports of internal talks about buying Perplexity, and in the context of a rapidly evolving AI landscape marked by heightened competition and strategic team acquisitions. The coming months will reveal how Prompt AI’s specialized technology, developed under the leadership of CEO Tete Xiao and President Trevor Darrell, is ultimately integrated into Apple’s expanding AI ecosystem (more details | see also).
The story was first reported by an independent source and is being cited for informational purposes only. For further details, see the original article.