Apple has made one of its largest acquisitions in history by purchasing Israeli AI startup Q.ai for nearly $2 billion, according to sources familiar with the matter cited in a Financial Times report. The deal, confirmed by Apple on Thursday, January 29, 2026, positions the company to accelerate its push into advanced wearable AI devices amid intensifying competition from rivals like Meta, Google, and OpenAI.
The acquisition of Q.ai, a secretive Tel Aviv-based startup founded in 2022, marks Apple’s second-largest deal ever—trailing only its $3 billion purchase of Beats in 2014. Financial terms were not officially disclosed by Apple, but people briefed on the transaction told Financial Times the valuation approached $2 billion. Backers including GV (formerly Google Ventures), Kleiner Perkins, Spark Capital, and Exor highlighted the scale in announcements following the news.
Q.ai’s core innovation lies in its use of imaging and machine learning to interpret “silent speech” by analyzing subtle facial expressions and micro-movements in the skin. Patents associated with the technology suggest applications in headphones, smart glasses, or other wearables, enabling users to interact privately with AI assistants without speaking aloud — ideal for discreet commands in public settings or noisy environments.
Apple’s senior vice president of hardware technologies, Johny Srouji, praised the startup in a statement: “Q.AI is a remarkable company that is pioneering new and creative ways to use imaging and machine learning.”
The move comes as Apple faces pressure to catch up in generative AI and wearable tech. Critics have pointed to delays in upgrading Siri and the company’s reliance on a partnership with Google for Gemini integration in devices. Meanwhile, competitors are advancing: Meta’s Ray-Ban smart glasses, Google’s and Snap’s upcoming AR offerings, and even OpenAI’s collaboration with former Apple designer Jony Ive on ChatGPT-powered hardware.
The deal carries echoes of Apple’s 2013 acquisition of PrimeSense, another Israeli firm specializing in 3D sensing technology that became foundational to Face ID on iPhones. Q.ai’s CEO, Aviad Maizels, previously founded PrimeSense, and some team members share that background. The founding team — including Maizels and co-founders Yonatan Wexler and Avi Barliya — will join Apple as part of the transaction.
Q.ai has operated largely in stealth since its inception, focusing on machine learning applications that enhance audio experiences, such as better understanding whispered speech or improving performance in challenging acoustic conditions. These capabilities could integrate into products like AirPods, the Vision Pro headset, or future smart glasses, bolstering Apple’s “Apple Intelligence” ecosystem and enabling more intuitive, non-verbal interactions with Siri.
Announced on the same day as Apple’s fiscal Q1 2026 earnings report, covering the critical holiday quarter, this acquisition signals a major investment in closing the perceived AI gap. While Apple’s earnings are expected to show strong growth (with consensus estimates around $138.5 billion in revenue and $2.67 EPS), the Q.ai deal underscores a proactive strategy to innovate in emerging categories like AI wearables.
MacDailyNews Take: As the race to build the next generation of AI-powered devices heats up, Apple’s nearly $2 billion bet on Q.ai could prove pivotal in delivering privacy-focused, seamless experiences that differentiate its hardware from the competition. With the founding team’s expertise and the technology’s potential for headphones and glasses, the acquisition may quietly reshape how Apple product users communicate with their devices — without ever saying a word.
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Apple has made one of its largest acquisitions in history by purchasing Israeli AI startup Q.ai for nearly $2 billion, according to sources familiar with the matter cited in a Financial Times report. The deal, confirmed by Apple on Thursday, January 29, 2026, positions the company to accelerate its push into advanced wearable AI devices amid intensifying competition from rivals like Meta, Google, and OpenAI.
The acquisition of Q.ai, a secretive Tel Aviv-based startup founded in 2022, marks Apple’s second-largest deal ever—trailing only its $3 billion purchase of Beats in 2014. Financial terms were not officially disclosed by Apple, but people briefed on the transaction told Financial Times the valuation approached $2 billion. Backers including GV (formerly Google Ventures), Kleiner Perkins, Spark Capital, and Exor highlighted the scale in announcements following the news.
Q.ai’s core innovation lies in its use of imaging and machine learning to interpret “silent speech” by analyzing subtle facial expressions and micro-movements in the skin. Patents associated with the technology suggest applications in headphones, smart glasses, or other wearables, enabling users to interact privately with AI assistants without speaking aloud — ideal for discreet commands in public settings or noisy environments.
Apple’s senior vice president of hardware technologies, Johny Srouji, praised the startup in a statement: “Q.AI is a remarkable company that is pioneering new and creative ways to use imaging and machine learning.”
The move comes as Apple faces pressure to catch up in generative AI and wearable tech. Critics have pointed to delays in upgrading Siri and the company’s reliance on a partnership with Google for Gemini integration in devices. Meanwhile, competitors are advancing: Meta’s Ray-Ban smart glasses, Google’s and Snap’s upcoming AR offerings, and even OpenAI’s collaboration with former Apple designer Jony Ive on ChatGPT-powered hardware.
The deal carries echoes of Apple’s 2013 acquisition of PrimeSense, another Israeli firm specializing in 3D sensing technology that became foundational to Face ID on iPhones. Q.ai’s CEO, Aviad Maizels, previously founded PrimeSense, and some team members share that background. The founding team — including Maizels and co-founders Yonatan Wexler and Avi Barliya — will join Apple as part of the transaction.
Q.ai has operated largely in stealth since its inception, focusing on machine learning applications that enhance audio experiences, such as better understanding whispered speech or improving performance in challenging acoustic conditions. These capabilities could integrate into products like AirPods, the Vision Pro headset, or future smart glasses, bolstering Apple’s “Apple Intelligence” ecosystem and enabling more intuitive, non-verbal interactions with Siri.
Announced on the same day as Apple’s fiscal Q1 2026 earnings report, covering the critical holiday quarter, this acquisition signals a major investment in closing the perceived AI gap. While Apple’s earnings are expected to show strong growth (with consensus estimates around $138.5 billion in revenue and $2.67 EPS), the Q.ai deal underscores a proactive strategy to innovate in emerging categories like AI wearables.
MacDailyNews Take: As the race to build the next generation of AI-powered devices heats up, Apple’s nearly $2 billion bet on Q.ai could prove pivotal in delivering privacy-focused, seamless experiences that differentiate its hardware from the competition. With the founding team’s expertise and the technology’s potential for headphones and glasses, the acquisition may quietly reshape how Apple product users communicate with their devices — without ever saying a word.
Please help support MacDailyNews — and enjoy subscriber-only articles, comments, chat, and more — by subscribing to our Substack: macdailynews.substack.com. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
The post Apple buys Israeli startup Q.ai for nearly $2 billion, its second largest acquisition ever appeared first on MacDailyNews.
