Tech giant Apple (AAPL) announced on Thursday that it has acquired Q.ai, an Israeli startup focused on artificial intelligence for audio technology, for close to $2 billion. As part of the deal, Q.ai’s founding team, including CEO Aviad Maizels, will join Apple. Interestingly, Maizels previously founded PrimeSense, a 3D sensing company that Apple acquired in 2013. That deal ended up helping Apple transition from fingerprint sensors to Face ID.
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Although Apple did not specify exactly how it plans to use Q.ai’s technology, it did offer some clues. For instance, the startup has been developing machine-learning tools that help devices better understand whispered speech and improve audio quality in difficult environments, such as noisy settings. This suggests that the acquisition could improve how Apple devices handle voice and sound in everyday use.
In addition, the deal fits into Apple’s recent moves of adding AI-powered audio features. In fact, the company has already introduced new AI capabilities in its AirPods that include real-time language translation. Separately, Apple hardware chief Johny Srouji praised Q.ai as a company that is finding creative new ways to combine imaging and machine learning. He also said that Apple is excited to bring the team on board and explore what comes next.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 19 Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $298.84 per share implies 16.3% upside potential.
