Apple sets sights on Prompt AI to supercharge smart home tech

Apple is reportedly in late-stage talks with the computer vision startup Prompt AI to acquire talent and technology that would help it upgrade its smart home devices and further enhance its position in the artificial intelligence market. 
First reported on by CNBC, the deal highlights Apple’s low-key but purposeful strategy of shaping its AI offerings through small acquisitions focused on buying talent rather than purchasing billion-dollar companies across the board.
Leadership at Prompt AI informed employees during an all-hands meeting that they were nearing the finalization of talks with Apple. Some staff would move to Apple as part of the deal, the company said, and those who did not would receive a less generous salary package and be encouraged to apply for open positions at the iPhone maker.
Before Apple entered final-stage talks, other proptech players, including xAI and Neuralink (which is coming from Elon Musk), had reportedly shown interest in acquiring Prompt AI, according to people familiar with the meeting. Yet Apple’s bid seemed to be the most strategically focused, with an emphasis on both the company’s technology and its research talent.
Prompt AI was established in 2023 by veteran AI researcher Tete Xiao, who holds a PhD in computer science from UC Berkeley, and Trevor Darrell, a co-founder of the Berkeley Artificial Intelligence Research (BAIR) Lab. That same year, the startup raised a $5 million seed round led by AIX and Abstract Ventures.
Xiao and Darrell are both respected figures in the AI community, known for their work in computer vision and deep learning — two areas where Apple has been quietly building its capabilities behind