Microsoft to invest in autonomous trucking startup Gatik: sources
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MICROSOFT is in advanced talks to invest in Gatik, a California-based autonomous driving startup, under its cloud partnership with the company, two sources said.
Microsoft plans to invest over US$10 million in a financing round that values Gatik at more than US$700 million, the sources added. As part of the deal, Gatik will use Microsoft’s cloud and edge computing platform Azure to develop autonomous delivery technology for trucks.
The terms of the deal could still change, said the sources, who requested anonymity to discuss private matters. Microsoft and Gatik declined to comment.
Like other big tech companies, Microsoft recently put funds into self-driving technology. In January 2021, it invested in General Motors-owned Cruise, which focuses on robo-taxis, in a deal that valued the company at US$30 billion. Cruise plans to use Azure to ramp up its autonomous vehicle solutions for commercial uses, and competes with Alphabet’s Waymo and Amazon’s Zoox.
Autonomous driving technologies are seen as revolutionary to the transportation and logistics industry, but have faced setbacks due to regulatory concerns on safety and less accessible funding in a slowing market.
In November, Ford and Volkswagen shut down their self-driving technology unit, Argo AI, saying that creating self-driving “robo-taxis” would be “harder than putting a man on the moon”.
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Gatik, founded in 2017 by industry veterans Gautam Narang and Arjun Narang, focuses on middle-mile, business-to-business logistics for the retail industry.
Since 2021, the company has launched fully driverless commercial delivery services with Walmart and Loblaw Companies, in which it offers short-haul deliveries in box trucks in Arkansas and in Ontario, Canada.
It has raised more than US$120 million from investors, including Koch Disruptive Technologies, Innovation Endeavors, Goodyear Ventures and RyderVentures.
In the first quarter of this year, Gatik plans to integrate its Class 6 autonomous box trucks into the Pitney Bowes e-commerce logistics network in Dallas, Texas, aiming to boost deliveries and reduce logistics costs. REUTERS
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