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Apple Expands AI Capabilities with Acquisition of French Startup Datakalab

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The Paris-based company, Datakalab, known for its advanced AI systems that operate directly on devices, became part of Apple Inc. as of December 17 last year. This strategic move, noted in a filing with the European Commission and reported by French publication Challenges (via iPhoneSoft), reflects Apple’s ongoing efforts to integrate more sophisticated AI capabilities within its hardware. The financial terms of the acquisition have not been disclosed.

Founded in 2016 by Xavier and Lucas Fischer, Datakalab has excelled in developing low-power, high-efficiency deep learning algorithms that operate independently from cloud-based systems. This technology is particularly attractive to Apple, aligning with its commitment to user privacy and data security. By processing data locally, Apple devices can minimize potential data breaches and improve processing speeds.

Datakalab’s expertise in compressing neural networks to function effectively on portable devices such as smartphones and tablets was likely a significant factor in attracting Apple’s interest. This acquisition is poised to enhance the AI features in Apple’s products, potentially starting with those to be unveiled in iOS 18.

Mark Gurman of Bloomberg has indicated that Apple’s large language models (LLMs) are set to operate entirely on-device, setting them apart from the cloud-based AI services offered by many competitors. Although this might limit the capabilities of Apple’s AI tools in some areas, Gurman suggests that Apple might bridge these gaps through licensing agreements with other tech giants like Google.

Prior to joining Apple, Datakalab worked on several high-profile projects, including collaborations with the French government and Disney. The company developed technologies capable of analyzing human emotions through facial recognition and visual data, which have been utilized to monitor audience reactions during cinema screenings in real time.

The tech community is eagerly awaiting the first glimpse of Apple’s enhanced AI strategy, expected to be showcased at the Worldwide Developers Conference (WWDC) in early June.

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