Apple has reportedly completed the acquisition of Prompt AI, a computer vision startup specializing in artificial intelligence applications for smart home technology. According to a report from CNBC, the deal was discussed during an internal all-hands meeting at Prompt AI, where company leaders confirmed that Apple’s purchase was imminent. While the financial terms remain undisclosed, employees were informed that those not joining Apple would face reduced pay and were encouraged to apply for open positions at the tech giant.
Prompt AI is best known for its flagship application Seemour — a clever play on words meaning “See more.” The app uses AI to enhance home security cameras, allowing them to recognize and categorize specific people, pets, and objects while sending alerts and text-based summaries describing unusual activities. However, despite its innovative technology, CEO Tete Xiao admitted that the company’s business model was unsustainable. As a result, the Seemour app will be shut down, and all user data will be deleted to ensure privacy protection.
Interestingly, Apple beat out competitors Elon Musk’s xAI and Neuralink to acquire Prompt AI, a clear indication of Apple’s increasing urgency to bolster its AI capabilities. The Cupertino company plans to integrate Prompt AI’s technology and its team of 11 employees into the HomeKit division, strengthening its efforts in smart home automation and security.
Although Apple has removed Seemour from the App Store, this move aligns with the company’s strategy to absorb technology and talent into its ecosystem. Historically, Apple prefers smaller, strategic acquisitions rather than large-scale takeovers. Its largest deal to date remains the $3 billion acquisition of Beats Audio in 2014, which eventually became Apple Music, now boasting over 108 million paid subscribers as of early 2025.
Apple’s motivation behind the Prompt AI acquisition appears to stem from its ongoing struggles in the artificial intelligence race. The company’s Apple Intelligence initiative has faced criticism for delays and underwhelming execution, especially regarding the new “personal Siri,” expected to debut with iOS 26.4 in spring 2026. The updated Siri will reportedly be able to interpret on-screen content and retrieve information directly from apps like Mail, Messages, Photos, and Calendar.
Despite this acquisition news, Apple’s shares dropped $8.77 (3.45%) following the U.S. government’s announcement to raise import tariffs on Chinese products to 100%, a move likely to increase Apple’s costs. Analysts suggest that the decline has little to do with the Prompt AI deal and more with growing concerns over pricing pressures and potential consumer impact in the U.S. market.
For Apple, acquiring Prompt AI represents a focused effort to secure valuable AI talent and strengthen its computer vision capabilities—an area that played a major role in the Vision Pro spatial computer, one of the company’s few recent AI successes. With Prompt AI now under its wing, Apple aims to accelerate its smart home innovations and reestablish leadership in the AI-driven future of consumer technology.
