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Apple nears deal to acquire talent and technology from computer vision startup Prompt AI

Apple aims to strengthen its AI capabilities by acquiring Prompt AI's team and technology in a deal smaller than recent tech acquisitions, focusing on smart home integration.

  • On Thursday, Apple Inc. is in late-stage talks to acquire top talent and technology from Prompt AI, likely integrating them into its HomeKit smart home division.
  • Silicon Valley's trend of acquihires has led companies to boost AI research and skirt regulatory concerns, while Prompt AI, founded in 2023 with a seed round from AIX and Abstract Ventures, struggled with its business model.
  • At an all-hands on Thursday, Prompt leadership told employees that staff not joining Apple will be paid a reduced salary and that xAI and Neuralink had approached the company, according to audio accessed by CNBC.
  • Apple's deal for Prompt would be far smaller than recent headline transactions, including Meta's $14.3 billion Scale AI investment and Google's $2.4 billion Windsurf deal, while its biggest acquisition was the $3 billion Beats Electronics purchase in 2014.
  • Analysts warn Apple must nail its AI strategy to drive the next upgrade cycle as Apple's stock has fallen 2% this year, trailing major indexes and tech megacaps.
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Apple is about to absorb the talents of Prompt AI, a young company specializing in computer vision that has been able to talk about it. This manoeuvre, which would have capped Elon Musk's ambitions at the pole, could give Apple Intelligence and the brand's home ecosystem a serious boost.

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CNBC broke the news in United States on Friday, October 10, 2025.
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