Apple buys Canadian start-up DarwinAI after falling behind Microsoft, Google in generative AI

Apple has acquired Canadian artificial intelligence (AI) start-up DarwinAI, adding technology to its arsenal ahead of a big push into generative AI in 2024.

The iPhone maker purchased the business earlier this year, and dozens of DarwinAI’s employees have joined Apple’s artificial intelligence division, according to people with knowledge of the matter, who asked not to be identified because the deal has not been announced.

DarwinAI has developed AI technology for visually inspecting components during the manufacturing process and serves customers in a range of industries. But one of its core technologies is making artificial intelligence systems smaller and faster. That work could be helpful to Apple, which is focused on running AI on devices rather than entirely in the cloud.

Alexander Wong, an AI researcher at the University of Waterloo who helped build the business, has joined Apple as a director in its AI group as part of the deal.

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Chinese AI-generated cartoon series broadcast on state television

Chinese AI-generated cartoon series broadcast on state television

In response to questions about the deal, Cupertino, California-based Apple said it “buys smaller technology companies from time to time” but does not discuss its plans.

Apple shares briefly gained on the news, rising more than 1 per cent to US$173.37. It was trading at $172.92 as of 1.29pm in New York, down about 10 per cent for the year.

Waterloo, Ontario-based DarwinAI had raised more than US$15 million as of 2022, according to the Canadian start-up community Communitech. It received investments from Honeywell Ventures and Inovia Capital, among other venture capital firms. The start-up also has worked with companies like Lockheed Martin and Intel, according to Communitech.

The under-the-radar acquisition comes ahead of a big AI push for Apple this year.