Samsung Electronics Co Ltd. (KRX:005930) of South Korea have announced that they have acquired Viv, an AI assistant company that is owned by Apple.
This comes soon after Google (NASDAQ:GOOGL) launched their Assistant, an artificial intelligence-powered system that works through smartphones or Home hub. Amazon too has launched their Echo speaker, which again is powered by an AI assistant known as Alexa. The market of artificial intelligence is surely heating up with businesses investing a lot more money into R&D and buying up applications and companies.
Samsung’s Forays into Artificial Intelligence
With this acquisition, Samsung will be bolstering their services and software across different devices. This is the company’s fifth acquisition in just about a year and a half, as Samsung is looking at new growth areas.
With Viv, Samsung phones can now have a digital personal assistant. They will also bring in a lot of devices in their ecosystem, from home appliances to smartwatches. Incidentally, Samsung already has their own smart home hub through SmartThings that was purchased for $200 million a couple of years back.
According to industry insiders, Samsung wants to look beyond just hardware sales. The electronics giant from South Korea wants to earn revenues from services. This is why, in 2015, Samsung launched their contactless payment service, which is called Samsung Pay. More of this is in the pipeline as it is a priority area for the business now.
Samsung (KRX:005930) wants to dominate hardware and operating systems on TV and watches. But the business also wants to play a key role on the services behind the hardware. Investments such as the acquiring of Viv will make it increasingly difficult for smaller hardware firms to compete.
Chris Brigham, Adam Cheyer and Dag Kittlaus of Siri International created Viv. It was dubbed as “an assistant that’s capable of anything”. It was a computer science breakthrough that can make its own programming and had both developers and consumers in mind. Samsung was attracted because of this dual focus, as it helps them integrate with their wearables and home appliances.
Samsung has not revealed how much they paid to acquire Viv. Both of them did not elaborate. But now the question is, how quickly can Samsung integrate it to deliver better applications to their customers?
The business is in competition with Microsoft, Amazon, Google and Apple. They are all investing a lot of resources and money in artificial intelligence.