Amazon is expected to announce a deal as early as today to buy autonomous vehicle technology provider Zoox for more than $ 1 billion, according to a report in The Information.
Because it is important: While Apple, Google, and others have invested in autonomous driving technology, Amazon is the one whose core business could benefit the most, given how much the company spends to deliver products to consumers.
Zoox CEO Aicha Evans told Axios earlier this year that the company was in talks with strategic partners and corporate investors to raise more money. The Wall Street Journal reported last month that Zoox and Amazon were in advanced talks.
Between lines: Zoox has been by far the most ambitious autonomous technology company as it has been working on developing a fully integrated vehicle, not just core autonomous technology.
- Zoox planned from the beginning to develop the technology, build a car, and operate a robotaxi service. Not even Waymo is trying to bite as much (although Cruise does).
- Car development costs billions of dollars, so Amazon will have to invest a lot more if it wants Zoox to stay on that path.
- It’s unclear what exactly Amazon wants to do with Zoox technology: use parts of its technology to apply to warehouse robots, delivery vehicles, and other needs, or to keep its entire project going.
- Zoox has already raised around $ 1 billion in funds, and was once valued at $ 3.2 billion
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