Apple’s Real AI Strategy Is Hiding in Its Acquisition History

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In 2009, Israeli venture capitalist Eden Shochat watched a video that he was convinced had to be fake.

On-screen, a person moved in front of a camera while a digital skeleton mirrored every step and gesture in real time.

The company behind the demonstration was called PrimeSense. Shochat’s first thought was that the demonstration had been carefully staged. The technology looked too advanced to work as advertised.

But it did work. PrimeSense’s motion-sensing technology went on to become the engine inside Microsoft’s (MSFT) Kinect gaming system. And four years later, Apple (AAPL) bought the company for a reported $350 million, its depth-sensing expertise eventually helping support Apple’s move into facial recognition and Face ID.