Apple Acquires AI Startup DarwinAI to Bolster Device AI Capabilities

Apple has acquired Canadian artificial intelligence startup DarwinAI, adding technology to its arsenal ahead of a major push into generative AI planned for 2024, according to the latest Bloomberg report that cites people in the know.

The iPhone maker purchased the Waterloo, Ontario-based company in an undisclosed deal earlier this year. As per the report, dozens of DarwinAI's employees have joined Apple's AI division as part of the acquisition.

DarwinAI has developed AI systems for visually inspecting components during manufacturing and serves customers across various industries. However, one of its core technologies involves making artificial intelligence models more compact and efficient to run on devices rather than relying solely on cloud computing resources.

This expertise in optimizing AI for on-device performance could prove valuable for Apple, which has prioritized running AI processes locally on iPhones, iPads and other hardware amid privacy concerns.

The acquisition comes as Apple plays catch-up in generative AI - technology that can generate human-like text, imagery and other content based on prompts. While rivals like Microsoft and Google have raced to integrate generative AI like ChatGPT, Apple has moved rather gradually.

Apple CEO Tim Cook has promised the company will "break new ground" in AI this year, with generative AI features expected to debut as soon as June's Worldwide Developers Conference. Despite making numerous AI company acquisitions over the past decade, ChatGPT's viral launch in 2022 caught Apple and Google off guard.

As part of the deal, DarwinAI co-founder Alexander Wong, an AI researcher at the University of Waterloo, has joined Apple as a director of its AI group. DarwinAI had raised over $15 million from investors like Honeywell Ventures before the acquisition.

Meanwhile, Apple has already started integrating generative AI internally for customer service requests and is working on AI tools for auto-generating presentations and code.