Apple, Meta, and Google are racing to dominate the next phase of artificial intelligence, and hardware has become a key battleground. Apple has now taken a major step forward by acquiring AI startup Q.ai, aiming to strengthen its position, especially in audio technology.

Apple has bought Q.ai, an Israeli company that focuses on imaging and machine learning. The startup is known for technology that helps devices understand whispered speech and improve audio quality in noisy environments.

This fits well with Apple’s recent AI upgrades to AirPods, including the live translation feature launched last year.

The company has also been working on technology that detects tiny facial muscle movements. This could help improve Apple’s Vision Pro headset and future wearable devices.

The deal is reportedly worth close to $2 billion, making it Apple’s second-largest acquisition ever. The biggest remains its $3 billion purchase of Beats Electronics in 2014.

This acquisition is familiar territory for Q.ai CEO Aviad Maizels. Back in 2013, Apple acquired his earlier company, PrimeSense, whose application strategy helped Apple move from fingerprint sensors to Face ID on iPhones.

Founded in 2022, Q.ai is backed by well-known investors such as Kleiner Perkins and Gradient Ventures. As part of the deal, Maizels and his co-founders Yonatan Wexler and Avi Barliya will join Apple.

The announcement comes just hours before Apple reports its quarterly earnings. Analysts expect revenue of about $138 billion, along with the strongest iPhone sales growth the company has seen in four years, highlighting how Apple’s AI and hardware strategy is becoming central to its future.