Apple Acquires Canada's 'DarwinAI'... "Accelerating Chase Against MS and Google"

DarwinAI Holds AI System Miniaturization Technology
"Expected to Create Synergy with Apple"

Apple has acquired the Canadian artificial intelligence (AI) startup 'DarwinAI,' Bloomberg reported on the 14th (local time). Apple, which has been considered behind in the generative AI sector, is intensifying efforts to catch up with competitors.

According to the report, sources revealed that Apple acquired DarwinAI earlier this year, and dozens of researchers and staff members have joined Apple's AI division. Additionally, Alexander Wong, co-founder of DarwinAI and an AI researcher at the University of Waterloo in Ontario, Canada, has joined Apple's AI organization as a director.

[Image source=Reuters Yonhap News]

Based in Waterloo, Ontario, this startup has developed AI technology capable of visually inspecting parts during manufacturing processes and has provided it across various fields. It is particularly known for possessing core technology that makes AI systems smaller and faster. The report analyzed that since Apple is focusing on running AI on hardware rather than the cloud, it will greatly benefit from this technology.

This acquisition of DarwinAI comes as Apple is expected to aggressively pursue generative AI development, such as ChatGPT, this year. Apple has been regarded as lagging behind competitors like Microsoft (MS) and Google in generative AI development. Recently, Apple also abandoned its decade-long project to develop a self-driving electric car (Apple Car). Alongside this, it is reported that about 2,000 researchers have moved to the AI department.

Moreover, while competitors have launched 'AI phones' equipped with generative AI on smartphones, Apple is also expected to incorporate AI features into the iPhone operating system iOS 18, scheduled for release this year. Apple CEO Tim Cook mentioned at the annual shareholders' meeting held earlier this month, "Apple is making significant investments in the AI field" and "will open new horizons."

Meanwhile, according to Communitech, a Canadian startup community, DarwinAI had raised over $15 million (approximately 1.98 billion KRW) by 2022 and has collaborated with companies such as Lockheed Martin and Intel. The news of DarwinAI's acquisition acted as a positive factor, with Apple's stock closing at $173, up 1.09% from the previous session. However, it has fallen about 10% since the beginning of this year.