But both companies have not disclosed the financial details of the acquisition.
Twitter has acquired New York-based startup Madbits, a firm that builds visual intelligence technology to assign relevant information to raw images.
The technology used by Madbits is based on deep learning, which can detect the context in the photos, as well as organises, understands and extracts information from images when there are no tags associated with the image file.
It aims to create dynamic and intelligent image sets to automatically organise large database of images.
The company has tested ten different applications and before going public with its products.
It is being speculated that Twitter will use Madbits' technology to enhance its image search feature, which has already been upgraded in the past few months with the addition of tagging feature, multiple attachment of photos in a single tweet, and sharing of animated GIFs.
Twitter may enable advertisers to use the technology to understand what is being said about the product in the micro blogging site.
Both the companies have not disclosed the financial details of the acquisition.