Apple discloses deal to hire team and license tech from personalized podcast startup Huxe
Quick Answer
Apple has secured a reverse acqui-hire deal with personalized audio startup Huxe, hiring key team members and licensing its technology.
Quick Take
This move follows Huxe's shutdown announcement, as Apple aims to enhance its Podcasts app with personalized audio features, potentially competing with Spotify's recent AI podcast generation tools.
Key Points
- Apple disclosed the deal to the European Commission on June 9, 2023.
- Huxe was founded by developers of AI-generated podcast features in NotebookLM.
- Huxe announced its shutdown on May 21, 2023, ceasing app services.
- The deal allows Apple to build AI talent without full acquisition scrutiny.
- Apple's move could enhance its Podcasts app with personalized audio capabilities.
DeepSignal Analysis
What happened
Apple has entered into a reverse acqui-hire agreement with Huxe, a personalized audio startup, to hire certain employees and license its technology. This follows Huxe's announcement of its shutdown, during which it stated it would cease operations and remove its app from stores. The deal was disclosed to the European Commission shortly after Huxe's closure announcement.
Key evidence
- Apple disclosed to the European Commission that it has agreed to make employment offers to certain employees of Huxe AI and to receive a non-exclusive license to Huxe’s intellectual property rights.
- Huxe announced on May 21 that it was shutting down, stating that it would remove its app from the Apple and Google stores and halt service.
- The reverse acqui-hire model allows larger companies like Apple to hire talent and license technology from startups without outright acquisitions, potentially reducing antitrust scrutiny.
Why it matters
This move indicates Apple's intent to enhance its Podcasts app with personalized audio features, possibly in response to Spotify's recent introduction of AI podcast generation tools. The acquisition of Huxe's technology and talent could position Apple more competitively in the personalized audio space, which is gaining traction among tech executives. However, the actual impact on user experience remains uncertain, as the general listener's acceptance of personalized audio over traditional podcasts is not clearly established.
📖 Reader Mode
~2 min readApple revealed in a regulatory filing that it has reached an agreement to bring on team members and technology from personalized audio startup Huxe, in what’s commonly known as a reverse acqui-hire deal.
As first reported in MacRumors, Apple disclosed to the European Commission that it has agreed to make employment offers to “certain employees of Huxe AI,” and to “receive a non-exclusive license to Huxe’s intellectual property rights.”
Reverse acqui-hires emerged in recent years as a way for larger companies to hire key team members and license technology from startups without acquiring the startups outright — presumably allowing them to build up AI talent and tech without drawing as much antitrust scrutiny. (Confusingly, these deals have both been referred to as “reverse acqui-hires” and as plain old “acqui-hires.”)
In the case of Huxe, the startup was founded by developers who’d previously worked on the AI-generated podcast features in NotebookLM (recently renamed Gemini Notebook). But Huxe announced on May 21 that it was shutting down, with the team posting on the Huxe website that the company would be removing its app from the Apple and Google stores, halting service, and deleting user data.
“The team is moving on to new things, and we won’t be continuing development of the product,” the company said. It also thanked its users, saying, “The fact that you used it, told friends about it, sent us your suggestions and your ideas, made it feel like we built it together.”
On June 9, shortly after Huxe’s announcement, Apple notified the European Commission of its deal.
The filing does not say who received employment offers or if they accepted. Nor does it disclose anything about Apple’s plans.
Possibly related: Huxe’s shutdown announcement came just a day after Spotify unveiled AI-powered podcast generation features of its own, so Apple could be hoping to add similar functionality to its Podcasts app. Tech executives seem enamored with the idea that personalized audio can replace regular podcasts (and maybe even parent-child interaction?), though it’s not clear how many normal listeners agree.
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Anthony Ha is TechCrunch’s weekend editor. Previously, he worked as a tech reporter at Adweek, a senior editor at VentureBeat, a local government reporter at the Hollister Free Lance, and vice president of content at a VC firm. He lives in New York City.
You can contact or verify outreach from Anthony by emailing [email protected].
— Originally published at techcrunch.com
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