Apple, Meta, and Google are locked in a fierce battle to lead the next wave of AI, and they’ve recently increased their focus on hardware. With the latest acquisition of AI startup Q.AI, Apple intends to gain an edge, especially in the audio sector.

As previously reported by ReutersApple has acquired Q.AI, an Israeli startup that specializes in imaging and machine learning, specifically technologies that enable devices to interpret whispered speech and improve audio in noisy environments. Apple has added new AI features to its AirPods, including live translation ability introduced last year.

The company has also developed technology that detects subtle facial muscle activity, which will help the tech giant improve the Vision Pro headset.

The Financial Times reports that the deal is worth nearly $2 billion, making it Apple’s second largest acquisition to date, after Beats Electronics of $3 billion in 2014.

Notably, this is the second time CEO Aviad Maizels has sold an Apple company. He used to be PrimeSense is for sale in 2013, a 3D-sensing company that played a key role in Apple’s transition from fingerprint sensors to facial recognition on iPhones.

Q.AI launched in 2022 and is backed by Kleiner Perkins, Gradient Ventures, and others. Its founding team, including Maizels and co-founders Yonatan Wexler and Avi Barliya, will join Apple as part of the acquisition.

The news comes a few hours ahead of Apple’s first quarterly earnings, where analyst estimated revenue at around $138 billion. It is also expected to be the company’s strongest iPhone sales growth in four years.