Apple aggressively expands in AI with acquisition of 21 startups, rapid staff hirings, and $1 billion investment

Since its emergence in 2022, ChatGPT has sparked widespread interest in artificial intelligence (AI). Despite ongoing debates about the benefits and challenges of this technology, major tech companies have not hesitated to invest in it. AI has been widely adopted, with applications ranging from chatbots to image generation and code interpretation tools. Even smartphone giants like Google and Samsung have incorporated AI features into their devices. However, Apple, the leading smartphone manufacturer, has remained distant from AI until now. According to a recent report, Apple has been discreetly acquiring companies, hiring staff, and increasing its investment to strengthen its AI capabilities.

Apple’s AI push

According to a report by the Financial Times, research by PitchBook shows that the Cupertino-based tech giant has been busy acquiring AI startups. In fact, it has acquired 21 startups since 2017, more than any of its major tech rivals. Its most recent acquisition was just last year, when it took over an AI-powered video compression maker called WaveOne.

Daniel Ives of Wedbush Securities told the FT: “I’d be shocked if they don’t do a major AI deal this year because the AI arms race is going on and Apple isn’t looking in from the outside.”

Analysts at Morgan Stanley say Apple has also been recruiting in the AI sector, with most of its jobs in “deep learning”.

According to Mark Gurman, Apple’s AI efforts are led by two executives at the Cupertino-based tech giant – John Giannandrea and Craig Federighi. Both VPs are called “lead sponsors” of the AI effort, while Eddie Cue, Apple’s chief service officer, has also been involved. For the uninitiated, Giannadrea led Google search and artificial intelligence before joining Apple in 2018.

While Giannandrea’s team is working on developing an AI system and using Siri to implement it, Federigh’s team is actively trying to incorporate generative AI features into iOS 18. As part of its efforts to make groundbreaking innovations in artificial intelligence, Apple is reportedly aiming to spend a whopping billion dollars a year on it.