Tech giant Apple (AAPL) is close to acquiring Prompt AI, which is a computer vision startup best known for its home security camera app, Seemour. In fact, according to CNBC, in a recent company-wide meeting, Prompt told employees about the deal and explained that those not joining Apple would receive a reduced salary but could apply for Apple jobs. Interestingly, other companies, such as Elon Musk’s xAI and Neuralink, also showed interest, but Apple appears to have moved ahead.
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Despite having strong technology, Prompt’s leaders, who founded the firm in 2023 and raised $5 million in funding, admitted that the business model wasn’t working. As a result, the company is now shutting down Seemour and plans to delete all user data in order to protect privacy. In addition, investors in the company will not recover all of their money. At the same time, employees were also told not to mention Apple publicly while job hunting or talking to others.
It is worth noting that Apple has a history of buying small teams quietly instead of making big acquisitions, likely to improve its technology without drawing regulatory attention. Moreover, Apple has done well so far in computer vision, especially with products like the Vision Pro headset, despite its underwhelming Apple Intelligence product. And since the Seemour app helped users track people, pets, and objects using security cameras, while sending alerts or summaries of what happened around the home, Prompt’s team is expected to help improve Apple’s HomeKit smart home system.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 19 Buys, 13 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $255.57 per share implies 4.2% downside risk.
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