Apple Quietly Acquires WhyLabs, Bringing Seattle AI Startup Team On Board
Apple’s Secret Acquisition of WhyLabs Finally Comes to Light
Apple has officially brought the founding team of WhyLabs into its fold, confirming rumors of an acquisition that GeekWire first reported earlier this year. The Seattle-based startup, which specialized in AI monitoring and observability tools, has now updated its website to announce the “discontinuation of operations” and plans to open-source its platform. While executives from both companies have remained tight-lipped about the details, LinkedIn profiles reveal that WhyLabs’ founders have transitioned into various AI-related roles at Apple. This acquisition represents another strategic move in Apple’s ongoing efforts to strengthen its artificial intelligence capabilities as it competes with tech rivals in the rapidly evolving AI landscape.
The Deal’s Structure and Timing Revealed Through Regulatory Filings
Though neither company has publicly discussed the acquisition, regulatory filings have provided some insight into the arrangement. According to the European Commission’s Digital Markets Act tracking webpage, Apple acquired “the right to make employment offers to and hire certain Americas-based employees of WhyLabs and a non-exclusive, worldwide, perpetual and irrevocable license to use all WhyLabs’ intellectual property.” The EU listing dates the deal to January 24, suggesting the acquisition came together in early 2024, though such notices typically appear at least four months after notification. WhyLabs, which had built software to help companies monitor AI applications for security and performance issues, was part of a growing wave of AI observability tools that emerged alongside the rapid adoption of artificial intelligence across industries.
WhyLabs Joins Apple’s Growing Collection of Seattle Tech Acquisitions
This acquisition adds WhyLabs to a growing roster of Seattle tech startups that Apple has purchased in recent years. The tech giant previously acquired Xnor, another Seattle startup specializing in edge-based AI tools, for approximately $200 million in 2020. Apple’s Seattle shopping spree also included machine learning startup Turi in 2016 and Union Bay Networks in 2014. These strategic acquisitions align with Apple’s expanding presence in the Seattle region, where it maintains a substantial engineering hub across multiple offices. The company recently secured a significant new lease in South Lake Union and currently lists more than 200 open positions in Seattle, indicating its continued investment in the area’s rich technology ecosystem.
WhyLabs’ Journey from AI2 to Apple
WhyLabs emerged from Seattle’s Allen Institute for Artificial Intelligence (AI2), the same research institution that incubated Xnor before its Apple acquisition. Prior to the acquisition, WhyLabs had achieved a valuation of approximately $37 million following a $10 million Series A funding round in 2021, according to PitchBook data. The company attracted investment from notable backers including AI Fund, Defy Partners, Bezos Expeditions, Madrona Venture Group, and Ascend. The startup’s founding team brought impressive credentials to Apple: CEO Alessya Visnjic spent eight years at Amazon developing machine learning infrastructure, co-founders Andy Dang and Sam Gracie were also Amazon veterans, while Maria Karaivanova came from executive positions at Cloudflare and as a principal at Madrona. Before its acquisition, WhyLabs had earned recognition in the Seattle tech community, ranking 81st on GeekWire’s list of top privately held startups in the Pacific Northwest and being named a finalist for Startup of the Year at the 2023 GeekWire Awards.
Apple’s AI Strategy and Competitive Positioning
This acquisition comes at a time when Apple has been perceived as lagging behind competitors in the artificial intelligence race. The Cupertino-based company is reportedly developing an AI-powered search system expected to debut next year, according to Bloomberg, and has explored acquiring established AI companies including Perplexity and Mistral. The WhyLabs acquisition fits into Apple’s broader strategy of building AI capabilities through targeted acquisitions of specialized talent and technology. By bringing on board a team experienced in monitoring and securing AI applications, Apple gains valuable expertise that could help ensure the reliability and security of its own AI initiatives as it works to catch up with competitors who have made more visible advances in the field.
The Broader Implications for AI Observability and Seattle’s Tech Ecosystem
The acquisition of WhyLabs by Apple highlights the growing importance of AI observability tools in the technology industry. As companies increasingly deploy AI solutions across their operations, the need to monitor, secure, and understand these systems becomes critical. WhyLabs was positioned at the forefront of this trend, developing tools to help organizations maintain control over their AI applications. For Seattle’s technology ecosystem, this acquisition represents another example of local innovation attracting major investments from global tech giants. While the acquisition means the end of WhyLabs as an independent entity, the decision to open-source its platform suggests that its technology will continue to have an impact on the broader AI community. As Apple integrates WhyLabs’ team and technology into its operations, the acquisition underscores Seattle’s position as a crucial hub for AI talent and innovation, particularly in the specialized field of AI monitoring and observability.
