Apple Acquires AI Music Startup in $1.6 Billion Deal
Apple has acquired Israeli AI startup AI Music in a deal reportedly valued at $1.6 billion, marking a significant expansion of its artificial intelligence and audio capabilities.
Key Details of the Acquisition
- Target: AI Music, an Israeli/UK-based startup founded in 2016.
- Reported Value: Approximately $1.6 billion.
- Timing: Acquired earlier this year.
- Technology: Uses AI to generate custom, dynamic music that adapts to user interaction.
- Team: The startup had about two dozen employees before the acquisition.
Apple declined to comment on the Bloomberg report. The technology is expected to enhance Apple’s audio and video products, potentially powering new features across its ecosystem.
Apple’s AI Acquisition Strategy
This purchase continues Apple’s aggressive push to bolster its AI capabilities as it competes with Google and Amazon in the smart speaker and AI assistant markets. Recent acquisitions include:
- Xnor.ai (2020): Seattle-based edge AI specialist bought for about $200 million.
- Voysis: Voice assistant startup.
- WaveOne: AI video compression startup.
Broader Strategic Context
The AI Music acquisition coincides with Apple’s reported development of a classical music subscription service. The company is also said to be preparing a hardware subscription service for iPhones and other devices, potentially launching this year.
Following the news, Apple’s shares rose 0.4% in premarket trading on Monday.
