Apple is reportedly acquiring Prompt AI, a computer vision startup, for an undisclosed sum, according to a new report from CNBC. Prompt AI is best known for its innovative Seemour app—a smart home security software that uses artificial intelligence to detect people, pets, and objects, sending detailed alerts whenever unusual activity is detected. The technology has drawn considerable industry attention and, evidently, Apple’s interest.
Acquisition Details and Employee Impact
CNBC, citing internal audio from a recent all-hands meeting, revealed that Prompt AI leadership told employees a deal with Apple is imminent. Those not joining Apple will face reduced compensation and are being encouraged to apply for other open roles at the tech giant. Notably, Apple beat out competitors including Elon Musk’s xAI and Neuralink for the acquisition. Investors in Prompt AI will receive partial reimbursement, but not a full return on their original investment. Employees were also instructed not to mention Apple when discussing their job situation publicly.
Why Apple Wants Prompt AI
Prompt AI’s CEO, Tete Xiao, reassured employees that the underlying technology and Seemour app are working as intended. The challenge, he explained, has been finding a viable business model. As a result, the Seemour app will be discontinued, all user data will be deleted to maintain privacy, and Apple is expected to integrate Prompt AI’s technology and talent into its HomeKit smart home division.
The Seemour app has already been removed from the App Store, indicating the acquisition is likely moving forward.
Strategic Motivation for Apple
For Apple, acquiring Prompt AI is primarily about expanding its roster of AI talent—the startup has just 11 employees—and building on its own computer vision and smart home efforts. While terms of the deal have not been disclosed, it fits Apple’s style of quietly acquiring impactful technology without headline-grabbing price tags; Apple’s largest acquisition remains Beats Audio for $3 billion in 2014, a deal that ultimately led to the launch of Apple Music, now serving over 100 million paid subscribers as of early 2025.
Apple’s Recent AI Track Record
Apple has faced criticism in the last year for lagging behind competitors in the AI race. The company’s Apple Intelligence initiative has hit numerous delays, especially in integrating advanced features into Siri. The “personal Siri” upgrade, expected to allow the assistant to contextually read a user’s screen and pull relevant information from across apps, is now targeted for release with iOS 26.4 in the spring.
Market Reaction and Macroeconomic Headwinds
Apple’s stock experienced a notable decline of $8.77 (3.45%) in trading today. However, this drop was largely attributed to the U.S. government’s announcement of a 100% tariff on products imported from China, which could significantly increase iPhone prices for American consumers and potentially push some toward lower-cost alternatives.
Vision Pro and the Future of Apple AI
Despite setbacks with generative AI, Apple impressed many observers with the launch of the Vision Pro spatial computer, which has drawn praise for its advanced computer vision capabilities. Current iPhone cameras already leverage similar recognition technology to identify people, pets, and objects in user photos, highlighting the company’s ongoing commitment to integrating AI features across its ecosystem.
