Apple’s AI Ambitions Grow as It Moves to Acquire Prompt AI and Retire Seemour

Apple appears ready to make one of its most intriguing moves in the AI landscape yet. According to CNBC, the Cupertino-based company is close to acquiring Prompt AI, a rising star in the computer vision and ambient intelligence space.

The move marks a rare instance of Apple stepping outside its typically conservative acquisition strategy, signaling that the company may finally be taking bold action to catch up in the fast-evolving artificial intelligence race dominated by Google, OpenAI, and Meta.

During an internal meeting on October 9, employees at Prompt AI were reportedly informed of the imminent deal. Investors are expected to receive partial compensation for their shares, though reports suggest they will not fully recover their initial investments – an indication that Apple is driving a particularly tough negotiation. While the final purchase price remains undisclosed, the acquisition has already triggered speculation about Apple’s long-term AI ambitions and its interest in real-world contextual computing.

Prompt AI’s main product, the Seemour app, is expected to go offline soon following the acquisition. The company announced that all user data will be permanently deleted to preserve privacy and comply with Apple’s data protection policies. Seemour was designed as an ‘ambient AI’ system that could interpret visual and environmental data in real time. By integrating natural language understanding with computer vision, the app could identify people, animals, or objects via connected home cameras and send descriptive alerts or summaries upon user request. This blend of vision and language positioned Prompt AI as one of the most forward-thinking startups in the home security and smart assistant market.

Historically, Apple has shied away from massive tech acquisitions. Its largest to date remains the $3 billion purchase of Beats Electronics in 2014. But as Apple struggles to fine-tune its Apple Intelligence initiative – its own suite of AI-powered features announced in mid-2024 – it seems the company is rethinking its strategy. Persistent delays in rolling out personal context awareness and in-app automation features have underscored the challenges Apple faces in integrating AI deeply within its ecosystem. These setbacks have fueled criticism that Apple, long celebrated for hardware innovation, is lagging behind in AI software development.

Analysts believe the Prompt AI deal could serve as a catalyst for Apple’s next-generation devices, particularly in areas like AI-driven smart glasses and augmented reality. By merging Prompt AI’s visual recognition technology with its own hardware expertise, Apple may finally position itself as a serious contender against Meta’s Reality Labs, which recently acquired Scale AI in a staggering $14.3 billion deal. Such a move would not only enhance Siri’s real-world perception capabilities but also bridge the gap between Apple’s current ecosystem and the emerging world of spatial computing.

While details of the final integration plan remain under wraps, the acquisition strongly suggests that Apple is preparing for a new phase – one where AI doesn’t just assist users but truly understands their surroundings. For a company that has long defined innovation through seamless user experience, Prompt AI might just be the missing piece that redefines what Apple Intelligence can become.