Apple acquires Israeli AI startup Q.ai for close to $2B to boost audio and on-device intelligence

Apple just made one of its biggest bets yet on AI and audio, and it did it in its usual quiet way. The company has acquired Israeli artificial intelligence startup Q.ai, Apple confirmed Thursday.

Financial terms were not officially disclosed, though Israeli tech outlet Calcalistech estimated the deal at around $1.5 billion. The Financial Times later reported that the transaction was valued at nearly $2 billion, a figure Reuters said it independently verified. Q.ai was backed by Matter Venture Partners, Kleiner Perkins, Spark Capital, Exor, and GV (formerly Google Ventures). If accurate, it would rank as Apple’s second-largest acquisition ever, behind only its $3 billion purchase of Beats in 2014.

Apple Acquires Q.ai, the Secretive Israeli AI Startup Founded by the Creator of Face ID Tech

Q.ai has kept a low profile since its founding. The company never released a public product, but people familiar with its work say the team has been focused on whispered speech recognition and advanced audio technologies built for wearable devices. Those areas sit squarely inside Apple’s long-term push to make hardware more context-aware without sending sensitive data off-device.

The startup was led by Aviad Maizels, a name that carries weight inside Apple. Maizels previously founded PrimeSense, which Apple acquired in 2013. PrimeSense’s depth-sensing technology later became a core component of Face ID, which debuted in 2017 and remains central to Apple’s biometric strategy. His return signals trust earned through past execution, not hype.

“We’re thrilled to acquire the company, with Aviad at the helm, and are even more excited for what’s to come,” Johny Srouji, Apple’s senior vice president of hardware technologies, told Reuters. Srouji leads Apple’s chip development, suggesting that Q.ai’s work is tied more closely to silicon-level features than to cloud services.

PitchBook lists GV, Kleiner Perkins, and Spark Capital among Q.ai’s backers and describes its focus as communication enhancement technology. That description lines up with Apple’s steady upgrades to AirPods, which now offer live translation, adaptive noise control, and features that respond when a user begins speaking. Whispered speech detection could extend that trajectory, opening the door to quieter, more discreet interactions with devices.

The timing is notable. Apple has faced growing pressure to show progress in AI as rivals spend aggressively on large models and infrastructure. At the same time, some Apple Intelligence features, including a more personal Siri, have slipped from their original timelines. Rather than chasing scale, Apple appears to be doubling down on targeted acquisitions that slot directly into products.

That approach has defined Apple’s dealmaking for years. Earlier this month, the company confirmed an agreement with Google to use Gemini models for parts of Apple Intelligence. CEO Tim Cook has been clear about the strategy, saying in July, “We’re very open to M&A that accelerates our roadmap.”

Q.ai fits that mold almost perfectly: a small, secretive team, a founder with a proven track record inside Apple, and technology aimed at the intersection of hardware, audio, and on-device intelligence. If the reported price is close to reality, it signals just how valuable Apple believes that intersection has become.