For about 2 billion dollars: Apple purchased a secret Israeli startup

Q.AI’s technology is based on recognizing tiny movements in the facial muscles, even without sound, and converting them into commands built into a computerized system. Patents filed by the company indicate possible use of smart glasses or headphones, where the user can “talk” to an artificial intelligence assistant without uttering a word. This means a completely private interaction, without the need to speak loudly in a public space, and without exposing sensitive content to the environment.

In a post published on the blog of GV, the former investment arm of Google and one of the investors in Q.AI, it is stated that this is the second largest acquisition in Apple’s history. According to GV, the move reflects a deep trust in the technological ability developed in Israel and its potential to be integrated into consumer products on a global scale.

The purchase comes amid increasing competition in the smart wearable devices market. Meta has had commercial success with its Ray-Ban smart glasses, which allow users to talk to an AI assistant by voice. Google and Snap are preparing to launch their own smart glasses later this year, while OpenAI last year acquired ex-Apple designer Jony Ive’s startup IO, which is developing a compact device dedicated to interacting with ChatGPT.

At the same time, investors and analysts have recently expressed concern that Apple is lagging behind in the artificial intelligence race, especially after the postponement of the launch of an advanced version of the voice assistant Siri. The existing system is seen by many as less advanced compared to Google Gemini and ChatGPT. Meanwhile, Apple recently signed a collaboration with Google to integrate Gemini as part of Apple Intelligence, the company’s new suite of AI services.

Traditionally, Apple makes relatively small purchases, sometimes in the framework of “acqui hire”, with the aim of recruiting specific teams and technologies. Its biggest deal to date was the acquisition of Beats in 2014 for $3 billion, a move that helped it establish Apple Music and compete with Spotify. In recent years, Apple has also made significant acquisitions in the field of chips, including the acquisition of Intel’s cellular modem activity in 2019, Dialog Semiconductor in 2018 and the Israeli company Anobit in 2011.

The company also has an interesting historical connection to Apple. Some of the team members previously worked at PrimeSense, an Israeli startup that Apple acquired in 2013. PrimeSense technology has become a cornerstone of the iPhone’s FaceID system. Now, more than a decade later, it seems that Apple is once again turning to Israeli innovation to lay the foundation for the next generation of human-machine interaction.