Apple may acquire Prompt AI’s team and technology – 9to5Mac

Apple Nears Deal to Acquire Prompt AI Team and Technology

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Apple’s Strategic AI Talent Acquisition

Apple is finalizing an agreement to acquire the technology and engineering team from computer vision startup Prompt AI, according to a CNBC report. The tech giant is pursuing what industry observers call an “acquihire” strategy – acquiring talent and intellectual property rather than purchasing the entire company.

Prompt AI leadership confirmed the pending transaction during an all-hands meeting with employees Thursday. Company executives informed staff that those not joining Apple would receive reduced salary packages while being encouraged to apply for open positions at the technology giant. The arrangement represents Apple’s latest move to bolster its artificial intelligence capabilities while avoiding potential regulatory scrutiny from the Federal Trade Commission.

Employee Transition and Investor Returns

The acquisition terms include specific provisions for Prompt AI’s workforce and financial backers. According to the internal meeting details, investors will receive partial returns but “won’t be made whole” in the transaction. Employees received instructions to refrain from mentioning Apple during job searches or when updating family about their employment situation until receiving further notice.

This approach mirrors strategies employed by other major technology companies in the competitive AI landscape. Last year, Microsoft paid approximately $650 million to license technology from Inflection AI while hiring most of its staff, including co-founder Mustafa Suleyman. Similarly, Google structured acquihire-style deals with Character.AI in 2024 and Windsurf this year.

Seemour App Discontinuation and Data Protection

Prompt AI’s flagship product, the Seemour application, will be discontinued as part of the acquisition agreement. The computer vision technology uses artificial intelligence to analyze security camera footage, detecting specific people, pets, animals, and objects within household environments. The system can send alerts and text-based descriptions of unusual activity or answer questions about events captured by cameras.

Users will receive notification that their data will be deleted and privacy protected following the app’s shutdown. This commitment aligns with Apple’s longstanding emphasis on user privacy and data security across its product ecosystem.

Industry-Wide Talent Acquisition Trend

The Prompt AI acquisition follows an established pattern among technology giants seeking to rapidly expand their AI capabilities. Meta has pursued similar strategies, investing in Scale AI while hiring its CEO Alexandr Wang and key team members. Amazon executed comparable talent acquisitions with Adept, demonstrating how major tech companies are competing fiercely for artificial intelligence expertise.

Prompt AI had been struggling to establish a sustainable business model before acquisition talks began. The startup had recently received approaches from Elon Musk’s xAI and Neuralink, indicating competitive interest in its computer vision technology. While the financial terms of Apple’s agreement remain undisclosed, the acquisition represents another strategic move in the intensifying battle for AI talent and innovation.

Industry analysts note that these talent-focused acquisitions allow large technology companies to bypass traditional merger reviews while rapidly integrating specialized teams and technologies into their existing research and development structures.

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