 "Amazon bets big on Robotics and AI, wants to invest up to $1bn in companies marrying the two")
Amazon has a new initiative in which it wants to focus on robotics startups that are working to integrate AI into their offering. To that effect, the tech giant has set up an industrial innovation fund of $1 billion and has been ramping up investments in companies merging AI and robotics.
Speaking to the Financial Times, Franziska Bossart, head of the venture capital wing of Amazon, which was established in 2022, said that the fund will prioritize generative AI, which holds significant potential for automation and robotics.
Bossart also revealed that Amazon is planning to intensify investment activities in 2024, following the fund’s initial foray into generative AI last year. Among its 12 total investments is Mantis Robotics, which is developing sensor-equipped robotic arms that can be used alongside humans.
The focus on generative AI aligns with broader industry trends, with major tech firms like Microsoft pouring billions into its development. Amazon itself has committed up to $4 billion to Anthropic, a startup specializing in generative AI.
Amazon’s interest in automation extends beyond AI, with significant investments in robotics and sorting systems, including 750,000 mobile robots deployed across its operations network.
Bossart emphasized the fund’s mission to enhance efficiency, safety, and delivery speed, with plans to broaden its scope to include companies involved in the final stages of delivery and geographical expansion.
Impact Shorts
More ShortsDespite concerns about job displacement, Bossart highlighted that Amazon’s automation efforts aim to shift roles rather than eliminate them. She reassured that “we’re also a long way off from replacing all humans.”
The expansion of Amazon’s investment arm comes amid a tech downturn, signalling potential opportunities for startups in the automation space. While Amazon continues to optimize its logistics network for efficiency and cost savings, CEO Andy Jassy emphasizes the company’s commitment to faster deliveries and lower costs for customers.
(With inputs from agencies)
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