Many technology giants are in the habit of acquiring small AI startups. Apple is no exception, but what sets this company apart is the manner in which they do it. Apple is always discrete in wrapping up these business deals. For example, Apple just acquired Hyderabad-based AI startup Tuplejump. The deal was sealed very quietly without anyone even knowing about it. How very typical of Apple!
There is a frenzy in India today over AI (Artificial Intelligence) as it has the potential to change the way people live their lives. Evolving technology around the world, coupled with a flourishing domestic market, has made it mandatory for Indian entrepreneurs, both big and small, to prefer building an AI startup.
There is one common thing we’ve noticed. As small companies are embracing AI, big players are buying shares in them. Without exception, all multi-national giants are involved in such acquisitions, which makes you wonder why they are on a shopping spree.
One thing that immediately comes to my mind is that they want to muzzle the competition to keep a bigger share of the market for themselves. Besides, it also makes better business sense. The cost of R&D required to set up an AI exceeds the cost of acquiring a ready-made AI startup.
Tuplejump is the first acquisition Apple has made in India. The entire staff strength of Tuplejump – 16 in total – has been acquired by Apple. The valuation of this deal has been put at about $20 million. Earlier this year, Apple also acquired Turin and Emotient to expand its business tentacles.
Looking at trends from a global point of view, statistics have shown that a lot of investors backed AI companies in the first quarter of 2016. There are over 50 such startups in India today. Recently, Evans Data Corp has pointed clearly to the direction that about 60% of software developers in India have been experimenting with AI as well as machine learning.
The fad is gaining greater momentum. AI technology is being incorporated into diverse fields, such as manufacturing, healthcare, commerce, and space exploration. In retail and banking sectors, AI and ML have gotten a strong foothold as well.
Since there are great prospects in AI, some startups are going the extra mile to raise money and go solo. Others have chosen the path of acquisition so that they get the financial muscle to put their data to work.
In India, it’s extremely difficult to get an AI startup really functioning in India. To get even, India must adopt policies capable of driving AI innovation, proliferation and adaptation.
Right now, China has slowed down. Apple is focusing on India. This is clearly for economic benefits; it is good for the Indian market and a welcome relief to the consumers. It is hoped that this new turn of events will be great for the Indian economy.