Apple snaps up Israeli AI startup Q.ai as the AI arms race intensifies

The race to dominate the next era of artificial intelligence is heating up—and Apple is making its move. Alongside rivals Meta and Google, the tech giant has been doubling down on AI, especially where software meets hardware. Its latest step: acquiring Israeli AI startup Q.ai, with a strong focus on audio technology.

First reported by Reuters, the acquisition brings Apple a team known for advanced imaging and machine-learning tools, particularly tech that helps devices understand whispered speech and clean up audio in noisy environments. That expertise fits neatly with Apple’s recent push to make AirPods smarter, including last year’s rollout of live translation features.

Q.ai’s technology could also have broader implications across Apple’s product lineup. The company has worked on systems that detect subtle facial muscle movements—capabilities that could enhance experiences on devices like the Vision Pro headset.

According to the Financial Times, the deal is valued at close to $2 billion, making it Apple’s second-largest acquisition ever. The only bigger one? Beats Electronics, which Apple bought for $3 billion back in 2014.

Interestingly, this isn’t CEO Aviad Maizels’ first exit to Apple. In 2013, he sold PrimeSense, a 3D-sensing company that played a major role in Apple’s shift from fingerprint authentication to Face ID on the iPhone.

Founded in 2022, Q.ai is backed by major investors including Kleiner Perkins and Gradient Ventures. As part of the deal, Maizels and co-founders Yonatan Wexler and Avi Barliya will join Apple.

The news lands just hours before Apple’s quarterly earnings report, with analysts forecasting around $138 billion in revenue. Expectations are also high for iPhone sales, which are projected to see their strongest growth in four years.