Apple Acquires Struggling Self-Driving Startup Drive.ai Ahead of Closure
Apple absorbs autonomous vehicle startup Drive.ai as the once-promising company shuts down its operations. The acquisition appears to be an acqui-hire focused on bringing talent into Apple's special projects division.
Apple acquires autonomous vehicle startup Drive.ai just as the company prepares to close its doors permanently. The startup, which was once valued at $200 million, files regulatory documents indicating that its Mountain View headquarters shuts down by the end of the week. Apple confirms the acquisition, though it remains unclear if the deal includes intellectual property or if the entire workforce makes the transition.
The tech giant's move looks like a classic acqui-hire aimed at securing top talent for its secretive special projects division. At least five of Drive.ai's 90 employees update their LinkedIn profiles to reflect new roles at Apple this month. Drive.ai declines to comment on the situation, and a public relations representative tells media outlets that the company is not responding to inquiries.
Drive.ai launches in 2015 from Stanford University's Artificial Intelligence Lab and raises about $77 million to develop self-driving software and retrofitted hardware kits. Despite launching a pilot on-demand service in Texas last year, the startup struggles with constant executive turnover and changing business models. The ultimate sale to Apple provides a soft landing for at least some employees as the independent venture comes to an end.