Apple’s AI Acquisition Spree Powers Upcoming Products and Services

In an ambitious move to further enhance its product offerings, Apple has strategically acquired 30 artificial intelligence companies over the past eight years. This acquisition spree, driven by a desire to integrate machine learning techniques into their consumer products, has been carefully monitored by Brendan Burke, an emerging technology analyst at research firm PitchBook.

Apple’s acquisition strategy is primarily focused on consumer applications of AI, but also encompasses operational techniques for machine learning deployment and edge devices. The company has also placed bets on the future of deep learning and other horizontal technologies. The acquired companies, though not household names, have contributed significantly to Apple’s product line. Emotient, Laserlike, Drive.ai, AI.Music and WaveOne are among the AI companies that have been absorbed into Apple’s ecosystem.

Unlike its tech rivals – Microsoft, Google, Meta and Amazon – Apple has been relatively discreet about its AI acquisition strategy and overall plans in the space. This includes the company’s internal research and development efforts in AI. However, these acquisitions have been instrumental in enhancing Apple’s product line, from smartphones and computers to watches, streaming services, operating systems, and mobile applications.

Apple’s CEO Tim Cook has expressed the company’s perspective on AI and machine learning during various public appearances. “We view AI and machine learning as core, fundamental technologies that are integral to virtually every product that we build,” Cook stated during an earnings report call. He added that the company has been researching a wide range of AI technologies, including generative AI, for years and will continue to invest in these technologies to enrich people’s lives.

Apple’s latest products showcase the company’s advancements in AI technology. The iPhone 15, for instance, features personal voice technology that lets users synthesize a voice like their own so they can speak words they type in FaceTime and phone calls. It also includes live voicemail, a real-time transcription of messages. The upgraded camera uses machine-learning AI to distinguish between a person and an animal in the frame.

The Apple Watch Series 9 and Ultra 2 integrate AI into features such as the double-tap function for easier task performance, a brighter display, smarter Siri, and advanced health monitoring. AI technology will also be incorporated into the upcoming Vision Pro mixed-reality headset, enabling users to create avatars of themselves using machine learning techniques.

Despite the steady progress in integrating AI into its products, Apple has faced criticism for being late to the game. Tech analyst Laura Martin believes Apple is “far behind” its big tech rivals. However, she also acknowledges that Apple’s economic model and ecosystem, which is geared towards machine learning, may be sufficient to maintain growth.

Apple’s rivals have reaped benefits from their early investments in generative AI, as evidenced by Microsoft’s recent earnings report. However, Apple has a unique advantage: a monetized installed base of over two billion users running its iOS operating software on devices.

Analysts suggest that Apple’s competition isn’t necessarily against the generative AI platforms being pursued by Microsoft, Google and Amazon. Instead, it may be a parallel development process. Apple’s focus isn’t on external AI developments but on becoming a significant player in the AI space through its own initiatives.

Apple’s investment in AI is substantial. Reports suggest that Apple could be spending up to $5 billion a year on AI and has already spent $10 billion on AI research & development in the past few years. This investment aims to create a foundation for developers to build AI apps, a move comparable to Microsoft’s spending.

The introduction of an AI App Store could be a game-changer for Apple. It would offer a historic opportunity to monetize their investment in AI and further leverage the growth of its services business, which has already become a $100 billion revenue stream. The possibilities within an AI App Store could range from core Apple offerings like Music, AI video generator tools, AI images generator applications, and artificial intelligence generated images, to a plethora of other AI tools and applications.

As the latest AI news unfolds, it’s clear that Apple’s strategic acquisitions and investments in AI are poised to significantly enhance its product offerings and open up new avenues for growth.