Apple has quietly moved to strengthen its artificial intelligence capabilities with the acquisition of Lattice Data, a startup that specializes in converting unstructured information into structured, analyzable data. The deal, valued at roughly $200 million, was reported by TechCrunch and marks a significant step in Apple's efforts to harness the vast amounts of 'dark data' that remain largely untapped.
Lattice Data, founded in 2015, emerged from Stanford University's DeepDive project, which was led by a team that included Christopher Ré, a professor and recipient of the MacArthur 'Genius' Grant, along with Hadoop co-founder Michael Cafarella, Raphael Hoffmann, and Feng Niu. Although the company has maintained a low public profile, its technology has drawn attention for its ability to process massive volumes of unstructured data—such as images, text, and other formats—and organize it into structured datasets that can be used for analytics and machine learning.
The scale of the challenge is immense. According to IBM, about 90 percent of the world's data has been created in the last two years alone. In 2013, the total amount of data was approximately 4.4 zettabytes, and that figure is expected to surpass 44 zettabytes by 2020. Yet, an estimated 70 to 80 percent of this data is 'dark'—meaning it lacks the labels, categories, or structure required for traditional analytical tools. This is precisely the gap that Lattice Data aims to fill, and now it will apply that expertise to Apple's ecosystem.
Apple's move is part of a broader trend among tech giants. Facebook, Google, and Microsoft have all made significant investments in AI, and the sector is attracting substantial venture capital. Fortune has reported that 39 of the 50 largest AI startups on the CB Insights list of 100 are based in the United States, underscoring the concentration of innovation in the field.
The financial outlook for AI is equally striking. According to Tractica, the AI market was valued at $643.7 million in 2016 and is expected to double in 2017. Projections suggest it could reach $36.8 billion by 2025. These figures help explain why Apple and its competitors are eager to secure a foothold in the technology now.
Why Unstructured Data Matters
The term 'dark data' may sound obscure, but its implications are practical. For companies like Apple, the ability to extract meaning from unstructured information could improve everything from voice assistants to photo organization and health monitoring. By bringing Lattice Data's team of about 20 engineers into its AI division, Apple gains not only technology but also the expertise to develop new capabilities.
While Apple has not publicly detailed its plans for the acquisition, industry observers note that the move aligns with the company's broader strategy to integrate AI more deeply into its products. The acquisition also highlights the growing importance of data processing as a competitive advantage in the tech sector.
As the AI market continues to expand, the race to harness dark data is likely to intensify. Apple's investment in Lattice Data signals that it intends to be a major player in this space, even as it remains characteristically tight-lipped about its long-term vision.
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