Apple Nears Deal to Acquire AI Startup Prompt AI
▼ Summary
– Apple is close to acquiring Prompt AI, a computer vision startup known for its Seemour home security camera app.
– Prompt AI is shutting down Seemour and deleting all user data to protect privacy, as its business model was not working despite strong technology.
– Employees were informed that those not joining Apple would receive reduced pay but could apply for Apple jobs and were told not to mention Apple publicly.
– Apple frequently acquires small teams quietly to enhance its technology, such as improving the HomeKit system, without attracting regulatory attention.
– Wall Street analysts give Apple a Moderate Buy rating with a $255.57 average price target, implying a 4.2% downside risk.
Apple is reportedly in the final stages of acquiring Prompt AI, a computer vision startup known for its Seemour home security application. According to sources, the tech giant informed employees about the impending deal during a recent company-wide meeting. Staff members who opt not to transition to Apple will reportedly receive a reduced salary but retain the opportunity to apply for positions within the larger corporation. While other firms, including Elon Musk’s xAI and Neuralink, expressed interest in the startup, Apple has seemingly taken the lead in negotiations.
Founded just last year, Prompt AI successfully secured $5 million in funding. However, the company’s leadership conceded that its business model was not sustainable. As a direct result, the Seemour app is being discontinued, and all user data will be permanently erased to safeguard privacy. Unfortunately, investors are not expected to recoup their full contributions. Employees have also been instructed to avoid any public mention of Apple during their job searches or external communications.
Apple has a well-established pattern of quietly acquiring small, specialized teams to enhance its technological capabilities without attracting significant regulatory scrutiny. This strategy allows the company to integrate innovative talent and intellectual property discreetly. Apple has demonstrated considerable strength in the computer vision field, particularly with its Vision Pro headset, even as its broader Apple Intelligence offerings have received mixed reviews.
The Seemour app specialized in using security camera feeds to monitor people, pets, and objects, providing users with alerts and activity summaries for their homes. Industry observers anticipate that the Prompt AI team’s expertise will be directed toward advancing Apple’s own HomeKit smart home ecosystem, potentially leading to significant improvements in its functionality and user experience.
Regarding Apple’s stock, Wall Street analysts currently maintain a Moderate Buy consensus rating. This assessment is based on 19 Buy recommendations, 13 Hold ratings, and three Sell advisories issued over the last quarter. The average price target for AAPL shares sits at $255.57, suggesting a potential downside of approximately 4.2% from current levels.
(Source: TipRanks)
