Apple to buy Intel cellular modem unit

Apple Inc. is buying Intel Corp.’s struggling cellular modem unit, bringing on key engineering talent and patents that will allow the technology giant to more quickly develop crucial components to connect its devices to the mobile internet.

The deal will give Apple 2,200 new employees and now a total holding of 17,000 wireless patents. Apple has been using Intel modems exclusively in iPhones since last year. But after having settled its long-standing royalties’ lawsuit with Qualcomm Inc. in April, it will go back to using that company’s 5G cellular modems for future versions of products like the iPhone.

Qualcomm was the first to offer such technology at a mass scale and was on track to have its second-generation chip in the market before Intel released its first. Eventually, Apple wants to shed all third-party partners and bring modem production in-house, a move that the deal with Intel should help expedite.

Apple has been working on its own modem technology for the past couple of years and has established development centers, including in San Diego, a hotbed for modem development and Qualcomm’s backyard, to support the effort. In recent months, Apple has been ramping up hiring from Intel and Qualcomm to work on 5G modems.

Uber acquires Mighty AI

Uber has acquired computer vision startup Mighty AI to help advance its technology for self-driving cars.

Mighty AI specializes in computer vision, a field within artificial intelligence that is used to better understand or "label" the surroundings of vehicles that will be deployed autonomously.

Uber, which has become the most important ride-hailing operator, has been moving into new technologies that could see deployment of autonomous vehicles and even flying cars in the coming years. The news comes amid reports that Apple had acquired self-driving tech start-up Drive.ai to advance its own ambitions in the sector.

Netflix buys StoryBots

Netflix Inc. acquired the StoryBots children’s media brand as the world’s largest streaming service providers to challenge rival Walt Disney Co.’s kid-friendly online platform scheduled to start in November.

Under the deal, StoryBots creators Gregg and Evan Spiridellis will produce more original content including series and short-form specials, Netflix said Thursday, without disclosing terms. Los Gatos, California-based Netflix has more than 148 million paid subscribers worldwide and spent about $7 billion on programming last year.

Buying StoryBots and expanding its programming may help Netflix draw more children and parents, a battleground market as family-focused Disney plans to start offering movies and shows from its Marvel, Pixar and Star Wars franchises online later this year. Netflix already streams “Ask the StoryBots," which features cylindrical animated characters addressing queries such as “What makes a bird a bird," and “What are good carbohydrates."

While Netflix and Disney square off over families, competition in the broader industry is likely to get even hotter. Apple Inc., AT&T Inc. and Comcast Corp. are also among the cash-rich giants planning streaming services as TV viewers shift away from cable TV to video-on-demand platforms.

Apple buys Pullstring

Apple agreed to buy Pullstring, a startup that enables the design and publishing of voice apps, as the tech giant seeks to compete more effectively with Amazon and Google in voice empowered apps. A group of former Pixar executives founded Pullstring in 2011 to make interactive voice apps for toys before expanding into Internet of Things (IoT) products.

Pullstring makes software tools for voice apps, and artificial intelligence to power those experiences and toys such as Mattel’s talking Barbie and Thomas the Tank Engine toys. The company was criticized in 2015 for creating “child surveillance devices,” but said its products had security features to protect privacy

Pullstring technology may help Apple to strengthen ties with app creators and gain broader developer support for Siri, which is critical for offering voice-enabled services that will encourage consumers to use its virtual assistant. Apple pioneered voice-enabled technology with the introduction of its Siri virtual assistant more than seven years ago, but the company has fallen behind Amazon and Google in voice-powered platforms like smart speakers that work as hubs for connected homes.

Amazon has a 70% share of the U.S. smart-speaker market with its Echo devices. Google Home trails with 24% of the installed base while Apple's HomePod is a distant third with only 6% of the market. Apple risks losing out on the growing market for IoT devices and services without a stronger presence in smart speakers.

Apple acquires Silk Labs

Apple’s HomePod is a distant third behind Amazon and Google when it comes to market share for smart speakers that double up as home hubs, with less than 5 percent share of the market for these devices in the U.S. And its flagship personal assistant, Siri, has also been determined to lag behind Google when it comes to comprehension and precision. But there are signs that the company is intent on doubling down on AI, putting it at the center of its next generation of products, and it’s using acquisitions to help it do so.

Apple has quietly acquired Silk Labs, a startup based out of San Francisco that had worked on AI-based personal assistant technology both for home hubs and mobile devices. There are two notable things about Silk’s platform that set it apart from that of other assistants: it was able to modify its behavior as it learned more about its users over time (both using sound and vision), and it was designed to work on-device — a nod to privacy and concerns about “always on” speakers listening to you, improved processing on devices and the constraints of the cloud and networking technology.

Silk Labs first product was originally conceived as integrated software and hardware: the company raised just under $165,000 in a Kickstarter to build and ship Sense, a smart speaker that would provide a way to control connected home devices and answer questions, and — with a camera integrated into the device — be able to monitor rooms and learn to recognize people and their actions.

Silk Labs announced that it would shelve the Sense hardware to focus specifically on the software, called Silk, after it said it started to receive inquiries from OEMs interested in getting a version of the platform to run on their own devices (it also raised money outside of Kickstarter, around $4 million). Potentially, Silk could give those OEMs a way of differentiating from the plethora of devices that are already on the market.

Microsoft acquires Semantic Machines

Microsoft is betting big on Artificial Intelligence. The Redmond, Washington based technology giant announced the acquisition of Semantic Machines, a company focused on building conversational AI. The move could help give Cortana the leg up it needs on competitors like Amazon Alexa and Google Assistant.

Semantic has previously worked with major tech firms, leading automatic speech recognition development for Apple’s Siri. In essence, Semantic employs machine learning in order to provide context to chatbot conversations, making dialogue seem a bit more natural and better-flowing.

Microsoft is by no means the only company trying to make strides when it comes to artificial intelligence and its smart assistants. Amazon, for example, is trying to give Alexa a better memory, while Google is making bots so human-esque that they’re practically indistinguishable from humans during phone conversations with its new Duplex offering.

Apple to acquire digital magazine service Texture

Apple had announced it signed an agreement to acquire Texture, the digital magazine subscription service by Next Issue Media LLC, which gives users unlimited access to their favorite titles for one monthly subscription fee.

Texture brings over 200 of the world’s best magazines to life, providing an easy way for users to read high-quality stories and entire issues of their favorite titles. With Texture, users enjoy the magazines they know and love, while discovering new content that fits their passions and interests.

Texture is owned by a consortium of big publishers, as well as private equity firm KKR, which put $50 million into the company in 2015. Texture was first assembled in 2009 and launched in 2012 as Next Issue Media. It was an attempt for big publishers to own their own version of Netflix or Hulu, and give them control of digital distribution instead of being cut out by Apple or Google. It eventually rebranded the service and de-emphasized the concept of magazines. Instead, it pushed the idea that your $10-a-month subscription gets you access to the world’s best articles, curated based on your particular interests.

Since its launch in 2010, Texture has become the leading multi-title subscription service giving users the ability to instantly access some of the most widely read magazines while on the go. In 2016, Texture was chosen by the App Store editorial team for the annual Best Of selections, which celebrate the most innovative apps and games for iOS users.

Apple Buys Shazam

Apple Inc. agreed to acquire music-identification service Shazam, taking ownership of one of the first apps to demonstrate the power of the iPhone, recognizing songs after hearing just a few bars of a tune.

Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to users. The Shazam app uses the microphone on a smartphone or computer to identify almost any song playing nearby and then point’s users to places they can listen to it in future, such as Apple Music or Google’s YouTube.

While Shazam has been popular with customers, it struggled turning its clever music service into a business that justified its valuation. It expanded beyond simple audio recognition in 2010 by adding capabilities that let television viewers “Shazam” an ad, which would then open a promotion from the advertiser on a user’s device. The company said this feature was used 700,000 times during the 2014 Super Bowl broadcast.

In November, Shazam had about 175 million monthly active users globally across iOS and Android, according to research firm App Annie. The U.S. is the largest single market, with about 20 million active users in November, while the U.K. had about 4 million in the same month. The acquisition would help Apple embed that capability more deeply into its music offerings. The company’s digital assistant Siri gained Shazam integration in 2014, so users could ask it what song is playing in the background.