Apple Acquires AI Startup to Heighten Competition with Google and Microsoft


In a strategic move to bolster its position in the artificial intelligence (AI) landscape, Apple has significantly ramped up its acquisition of AI startups, outpacing tech giants Google and Microsoft. With a total of 32 AI startups acquired by 2023, Apple is setting a new benchmark in the tech industry’s ongoing AI arms race.

Key Highlights:

  • Apple leads with 32 AI startups acquired by 2023, the highest among tech giants.
  • Notable acquisition includes WaveOne, specializing in AI algorithms for video compression.
  • Apple’s AI strategy focuses on early-stage startups for emerging AI trends and technologies.
  • Competitors like Google and Microsoft are also making considerable investments in AI.

Apple Acquires AI Startup to Heighten Competition with Google and Microsoft

The Strategy Behind Apple’s AI Acquisitions

Apple’s aggressive approach to AI startup acquisitions highlights the company’s commitment to innovation and its determination to stay ahead in the rapidly evolving tech landscape. By acquiring a wide range of AI startups, Apple not only secures top-tier talent but also gains access to cutting-edge technologies. This strategy ensures Apple’s competitive edge by consolidating its foothold in crucial AI domains, from natural language processing to machine learning-enhanced video compression.

One of the standout acquisitions is WaveOne, an AI startup focusing on developing algorithms for video compression. The acquisition, which was not officially confirmed by Apple but was announced by WaveOne executive Bob Stankosh on LinkedIn, underscores Apple’s venture into enhancing AI capabilities in digital media compression and storage management​​​​.

Comparing Apple to Other Tech Giants

While Apple, Google, and Microsoft have all made significant strides in integrating AI into their products, Apple’s approach to acquiring early-stage AI startups differentiates it from its competitors. This proactive strategy allows Apple to tap into emerging AI technologies before they reach mainstream adoption, giving it a strategic advantage in innovation.

Google and Microsoft have also been active in the AI space, focusing their efforts on both acquisitions and internal development of AI technologies. However, Apple’s substantial investment in AI startup acquisitions, amounting to a 21% equity and add-on investment in AI technologies since 2017, places it well ahead of Microsoft (12%) and Alphabet Inc. (8%) in terms of investment intensity​​.

Implications and Future Prospects

The implications of Apple‘s AI acquisition spree are profound, not just for the company but for the tech industry as a whole. By integrating advanced AI technologies into its products, Apple can offer users more sophisticated and personalized experiences. This includes everything from improved natural language understanding in Siri to enhanced video compression technologies that could revolutionize iCloud and Photos storage management.

As Apple continues to invest in AI, the tech community eagerly anticipates how these acquisitions will translate into new features and products. With the AI landscape continually evolving, Apple’s strategy of acquiring and nurturing innovative AI startups will likely play a pivotal role in shaping the future of technology.

Apple’s strategic acquisition of AI startups, notably WaveOne for video compression technology, showcases its ambition to lead in the AI domain and enhance product offerings such as Siri and iCloud. With the largest number of AI startup acquisitions among tech giants, Apple is keen on leveraging AI for future iOS versions and iPhone models, emphasizing its commitment to innovation. The incorporation of these AI technologies aims to improve user experience through advanced features and efficiency​​​​​​.

About the author


Hardik Mitra

Hardik’s expertise in digital media and search engine optimization ensures that PC-Tablet’s content reaches its intended audience. His strategies and innovative approaches have played a pivotal role in the growth and online presence of the platform.

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