Apple (NASDAQ:AAPL) is in advanced-stage discussions to acquire top talent and technology from Prompt AI, a computer vision startup known for its flagship app Seemour, CNBC reported, citing an audio obtained from a company meeting on Thursday.
At the all-hands-on meeting, the executives of the 11-employee firm told staffers that those who don’t join the tech giant will receive a lower salary and encouraged them to apply for company’s open positions.
Among other bidders to target Prompt AI included Elon Musk’s xAI (X.AI) and Neuralink, the executives said, asking employees to avoid mentioning Apple (NASDAQ:AAPL) until further notice as they look for jobs and update their families and friends about the changes.
The leadership added that Prompt AI’s business model hasn’t worked, even though the company’s technology and Seemour app were performing well. They said that Seemour, which sends alerts and summaries based on actions caught on camera feeds, will be retired, and data from users will be deleted.
Prompt AI raised $5M in seed funding led by AIX and Abstract Ventures in 2023, the year it was launched by co-founders, including CEO Tete Xiao, a well-known AI researcher. Since its inception, Apple (NASDAQ:AAPL) has avoided major acquisitions. The company’s last major acquisition was its $3B deal to buy high-end headphone manufacturer Beats Electronics in 2014.