The deal was worth $200 million.
Apple said: "Apple buys smaller technology companies from time to time and we generally do not discuss our purpose or plans."
Experts say that Xnor.ai's work is expected to be be incorporated into future iPhones, improving Siri and other AI and machine learning-based tasks.
This is another large scale acquisition after Apple acquired another Seattle-based machine learning startup Turi for almost same amount. The move is set to increase Apple's presence in the Seattle region where the tech giant has been building an engineering outpost. Turi offers tools that are meant to let developers easily scale machine learning applications.
Not only had these, Apple also bought AI startups like VocalIQ and Perceptio and facial recognition startup Emotient, among others.