Apple has confirmed that they have acquired autonomy startup Drive.ai. Apple has hired “dozens” of Drive.ai hardware and software engineers and will receive some intellectual property and hard assets, including vehicles.
Drive.ai, which has been seeking a buyer for months and recently laid off 90 engineers, was valued at over $200M in its most recent round of funding. We believe the acquisition price will be less than $35M.
Drive.ai, once considered among the industry’s leaders, us selling at a discount which highlights the financing difficulties and downward pressure on startup valuations, as timelines to commercialization and revenue are pushed out.
The dozens of companies working on autonomous transport will not all survive in the long run; however, talented engineers in the space will remain valuable, so we anticipate more acqui-hires.