FEBRUARYASIA BUSINESS OUTLOOK8NEWSROOMApple has acquired Israeli artificial intelligence startup Q.ai, a company focused on advanced AI audio technology.While Apple did not disclose official financial terms, a source familiar with the matter said the deal valued Q.ai at approximately $1.6 billion.The startup was backed by major venture capital firms including Matter Venture Partners, Kleiner Perkins, Spark Capital, Exor, and GV (formerly Google Ventures).Apple did not specify how it plans to deploy Q.ai's technology, but confirmed the company has developed machine learning applications that help devices better understand whispered speech and improve audio clarity in challenging environments.These capabilities align with Apple's growing focus on intelligent audio experiences across its device ecosystem.Last year, Q.ai filed a patent application covering technology that uses facial skin micromovements to detect words that are mouthed or softly spoken. The system can also identify individuals and assess emotions, heart rate, respiration rate, and other physiological indicators.Around 100 Q.ai employees, including CEO Aviad Maizels and Co-Founders Yonatan Wexler and Avi Barliya, will join Apple. Maizels previously founded 3D sensing company PrimeSense, which Apple acquired in 2013. That acquisition played a key role in Apple's shift from fingerprint sensors to facial recognition technology in iPhones.Apple has already been integrating AI into AirPods, including speech translation features introduced last year, signaling that Q.ai's technology could further enhance its AI-powered audio ecosystem.In a statement, Maizels said, "Joining Apple opens extraordinary possibilities for pushing boundaries and realizing the full potential of what we've created, and we're thrilled to bring these experiences to people everywhere.""Q.ai is a remarkable company that is pioneering new and creative ways to use imaging and machine learning," Johny Srouji, Apple's senior vice president of hardware technologies, said in a statement. "We're thrilled to acquire the company, with Aviad at the helm, and are even more excited for what's to come." Delta Electronics has surpassed a US$100 billion market valuation, becoming Taiwan's second-largest publicly traded company, according to Bloomberg.Its market capitalization has more than quadrupled since April, overtaking MediaTek in September and Hon Hai Precision Industry (Foxconn) earlier this month.The company's rapid rise is linked to its strong position in AI server components, particularly in power and cooling systems required for high-performance AI infrastructure.Analysts highlight that Delta's profitability from specialized components contrasts with Foxconn's focus on lower-margin assembly operations. However, the share of operating profit coming specifically from AI-related products still needs verification to fully justify the valuation milestone.In the third quarter, server power and cooling accounted for 34% of revenue--23% from power and 11% from cooling--while overall operating margin increased to 16.5%, although product-level margins remain undisclosed.Further evaluation is needed on Delta's order backlog and market share in high-density power and liquid cooling, especially as competition intensifies. Meanwhile, Taiwan Semiconductor Manufacturing Co. (TSMC) remains the leader with a market valuation of approximately US$1.5 trillion.Industry dynamics also support Delta's growth. Data center rack power density is rising from 16 kW to a projected 240 kW for next-generation AI systems, driving a multi-year retrofit cycle.The global data center cooling market is forecast to reach US$19.7 billion by 2029, benefiting suppliers of liquid cooling, power components, and energy management software serving AI-driven computing needs. APPLE ACQUIRES AI AUDIO STARTUP Q.AI IN $1.6B DEALDELTA ELECTRONICS CROSSES $100B ON AI SERVER BOOM· Delta Electronics crosses $100B valuation on AI server demand· Server power & cooling made up 34% of Q3 revenue· Data center cooling market projected to hit $19.7B by 2029
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