Apple has quietly purchased DarwinAI, a Canadian AI startup renowned for its cutting-edge technology in visual inspection and AI optimization.

Founded in 2017 in Waterloo, Ontario, DarwinAI has carved a niche in the AI sector with its focus on visual quality inspection and the optimization of AI systems for manufacturing processes. The company’s expertise in creating compact and efficient AI solutions aligns with Apple’s strategy of implementing powerful AI capabilities directly on devices.

Though the financial details of the deal remain undisclosed, the acquisition has led to a significant transition of DarwinAI’s workforce to Apple’s AI division. Among the notable figures joining Apple is Alexander Wong, a co-founder of DarwinAI and a respected AI researcher from the University of Waterloo, who now serves as a director in Apple’s AI group.

Despite being a leading acquirer of AI and machine learning companies, Apple is perceived as lagging in the generative AI domain. With tech giants like OpenAI, Google, and Microsoft advancing rapidly, Apple’s acquisition of DarwinAI is a clear signal of its intent to catch up and lead in generative AI innovation. Tim Cook, Apple’s CEO, has indicated significant internal developments in generative AI, promising groundbreaking advancements to be revealed later in the year.

The purchase of DarwinAI comes at a crucial time for Apple, following its decision to halt a $10 billion electric vehicle project. The redirection of focus towards AI indicates Apple’s intent to dominate this technology domain. DarwinAI had secured over $15 million in funding by 2022, with significant investments from Honeywell Ventures and Inovia Capital, and has collaborated with industry giants like Lockheed Martin Corp. and Intel Corp.