Apple is close to a deal with Prompt AI, a small computer-vision startup. The goal is talent and tech for Apple Intelligence and HomeKit Secure Video. Apple reportedly beat Elon Musk’s xAI to the punch. CNBC described the move as a late-stage “acqui-hire,” not a full corporate buyout.
Apple faces pressure to speed up its AI rollout. Siri’s big upgrade remains delayed, and rivals are moving fast. Therefore, Apple is buying expertise rather than waiting to build it all in-house.
What Prompt AI brings
Prompt AI’s core product, Seemour, adds smart detection to home cameras. It identifies people, pets, and objects, and then writes activity summaries. Those features line up with HomeKit Secure Video and Apple’s Visual Intelligence camera answers. As a result, Apple can ship better on-device recognition and cleaner alerts.
According to internal briefings at the startup, Prompt AI plans to retire the app and delete user data. Investors from a 2023 seed round may not recoup everything, but they will receive some return. Some employees will join Apple; others were urged to apply for open roles.
A focused AI deal strategy
Apple was not the only suitor. Neuralink and xAI also explored deals with the team. Still, Apple moved first and aligned the tech with iPhone-centric AI needs. That focus supports Visual Intelligence on devices we already carry every day.
Moreover, two respected researchers lead the startup. CEO Tete Xiao has a strong CV in vision. President Trevor Darrell helped found Berkeley’s AI Research lab. Their arrival would deepen Apple’s bench immediately.
Part of a broader shopping list
This year, Apple quietly added several AI firms. It picked up TrueMeeting, WhyLabs, and Mayday Labs to harden avatars, reduce hallucinations, and improve productivity features. In July, Tim Cook said Apple had acquired seven companies so far in 2025 to “accelerate our roadmap.” The company prefers many small deals over one massive splash, but it remains open to bigger moves if needed.
If the Prompt AI deal closes, Apple gains instant vision talent and shipped code. Consequently, Apple Intelligence could see faster, smarter camera-based features across iPhone, iPad, and HomeKit—delivered with Apple’s privacy promises in mind.
