Apple Slow On AI? iPhone Maker Has Been Quietly Buying More Startups In Hot Space Than Most Rivals For Past 10 Years
In a strategic move to enhance its artificial intelligence (AI) capabilities, Apple Inc. (NASDAQ:AAPL) has acquired Canadian AI startup DarwinAI. The acquisition is part of Apple’s significant push into generative AI this year.
What Happened: Apple acquired DarwinAI earlier this year, according to a Bloomberg report. DarwinAI’s employees, including AI researcher Alexander Wong, have joined Apple’s AI division.
DarwinAI’s expertise in creating AI technology for inspecting components during manufacturing and making AI systems smaller and faster could be a game-changer for Apple, which is focusing on running AI on devices rather than entirely in the cloud.
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While Apple has been ramping up its AI efforts, CEO Tim Cook first mentioned it during the company’s December quarter earnings.
Apple’s acquisition of DarwinAI follows several developments that highlight the tech giant’s growing interest in AI.
In January, Apple’s CEO Tim Cook first mentioned AI during the company’s shareholder meeting, a move that sparked optimism among analysts about Apple’s AI play.
Why It Matters: Wedbush’s Dan Ives noted that Apple was entering a “new growth cycle,” with AI and iPhone being its two primary growth drivers.
Apple’s AI ambitions were further underscored by its efforts to integrate generative AI technology into iPhones.
The company’s recent hardware innovations, including the M3 Max processor for MacBooks and the S9 chip in Apple Watch Series 9, also indicate its commitment to AI.
However, Apple’s AI journey has not been without challenges. The company’s decision to abandon its decade-long research and investment in an autonomous car was viewed as a setback.
Its latest launch, Apple Vision Pro, a virtual reality and video headset, also received mixed reviews.
Despite these hurdles, Apple’s acquisition of DarwinAI signals its determination to stay ahead in the AI race.
Price Action: Apple stock closed at $173.25 on Thursday, up 1.24%, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo by Laurenz Heymann on Unsplash
