Amazon plans to invest $1 billion in startups combining AI with robots

Amazon is going to spend $1 billion on startups that combine artificial intelligence with robotics to improve its logistics network.

Here's What We Know

The Amazon Industrial Innovation Fund, established in 2022, is preparing to focus on the development of generative artificial intelligence, which has already attracted the attention of large technology companies.

While Amazon is already making investments in robotics, such as its investment in Mantis Robotics, a company that develops robotic arms to collaborate with humans, the new funds will be directed at generative AI groups.

Amazon's Industrial Innovation Fund plans to expand its activities this year. They are looking for opportunities to invest in startups that specialise in services related to the "last mile" of delivery. The "last mile" is a phrase that refers to the last stage of delivery when the goods reach the end consumer. In addition, the fund considers investments in geographically dispersed companies that are in the later stages of development, i.e., already have a certain level of success and stability.

While increased automation may be a concern for Amazon's employees, the company says that this year's increased investment could be favourable for tech startups.

Amazon is continuing its strategy to improve profitability by focusing on improving the efficiency of its warehouses and logistics network following the large investments made during the pandemic.

Source: Ars Technica