Samsung Electronics announced that it has agreed to acquire Viv Labs, Inc., a U.S.-based artificial-intelligence software company run by a co-creator of Apple's Siri voice assistant program. Viv has developed an open artificial intelligence (AI) platform that gives third-party developers the power to use and build conversational assistants and integrate a natural language-based interface into applications and services. The transaction is subject to customary closing conditions.

The developers behind Viv also founded Siri, which was sold to Apple and became the voice-based digital assistant on iPhones and other gadgets.

The deal showcases Samsung's commitment to virtual personal assistants and is part of the company’s broader vision to deliver an AI-based open ecosystem across all of its devices and services.
A Viv-based digital assistant will first appear on Samsung’s smartphones due out later next year, according to Rhee In-jong, executive vice president at Samsung.

Viv was founded by Dag Kittlaus and Adam Cheyer in 2012. As computer hardware and software improves, the ability of devices to communicate verbally is becoming a key feature of phones and other gadgets that will harness artificial intelligence. Viv was designed as a software platform that other programmers could use to build conversational features into their products.

Viv’s platform also allows developers to teach the system how to create new applications or to use existing applications, building an open ecosystem of intelligence that is greater than the sum of its parts and gets smarter every day.

As part of the acquisition, the founding team will work closely with Samsung’s Mobile Communications business, but continue to operate independently under its existing leadership.

The acquisition of Viv could help the Korean firm shore up its competitiveness at a time when Google's new Pixel smartphones - armed with the U.S. firm's voice-powered digital assistant - threatens Samsung and other smartphone makers who are largely reliant on the Android operating platform.

Pressure from activist investor

In related news, Samsung said on Thursday it will carefully review proposals made by U.S. hedge fund Elliott Management for restructuring and a special dividend.

The activist investor sent a letter to the world's No. 1 smartphone maker on Wednesday, spelling out changes that include splitting into a holding company and listing its operating company on the Nasdaq stock exchange. Elliott said the new holding company should look at a possible all-stock merger with Samsung C&T Corp - a subsidiary that the New York hedge fund targeted in a heated shareholder battle last year.

Samsung said in a statement that it would carefully consider the proposals, adding the firm "believes in a constructive and open dialogue with investors with a view to maximizing shareholder value."

Elliott's latest activist target is under pressure after issuing an unprecedented recall of at least 2.5 million Galaxy Note 7 smartphones last month.

Samsung's positive response to consider Elliott's proposals helped the stock shrug off renewed concerns about the recall after owners of a replacement Note 7 said its battery had begun smoking in U.S. plane.

This has prompted fresh investigations by the Consumer Product Safety Commission and the Federal Aviation Administration. Samsung said it was working to recover the device and that it cannot confirm whether the device in question is a replacement Note 7 until it can retrieve it.