Apple has acquired Q.ai, an Israeli artificial intelligence startup, in a move that underscores its growing focus on AI-driven hardware innovation. The deal, reported by Reuters and confirmed by the Financial Times, is valued at nearly $2 billion, making it Apple’s second-largest acquisition ever, behind only the $3 billion purchase of Beats Electronics in 2014. Q.ai specializes in machine learning technologies for audio processing, particularly in interpreting whispered speech and enhancing sound quality in noisy environments. These capabilities are expected to bolster Apple’s ongoing efforts to improve the performance of its AirPods and future audio-centric devices. The company has already introduced live translation features in its AirPods and is developing advanced sensors that detect subtle facial muscle movements—technology that could significantly enhance the user experience on the Vision Pro headset. The acquisition marks Apple’s latest strategic push in the intensifying AI race, where companies like Meta and Google are also investing heavily in both software and hardware. With Q.ai’s expertise, Apple aims to strengthen its position in AI-powered audio and sensor technologies, areas critical to its vision of seamless, context-aware devices. The startup, founded in 2022 by Aviad Maizels, Yonatan Wexler, and Avi Barliya, has attracted backing from prominent investors including Kleiner Perkins and Gradient Ventures. All three co-founders will join Apple as part of the acquisition, bringing deep technical expertise in computer vision and machine learning. This deal comes just hours before Apple’s quarterly earnings report, which analysts expect to show revenue of approximately $138 billion. The company is also projected to see its strongest iPhone sales growth in four years, signaling continued momentum in its core product line. The acquisition of Q.ai reflects Apple’s broader strategy to integrate cutting-edge AI capabilities directly into its hardware, ensuring a competitive edge in the rapidly evolving tech landscape.