TLDR:
- Amazon is hiring three founders from Covariant, a startup developing AI for warehouse robotics systems
- Amazon will receive a non-exclusive license to Covariant’s AI models
Amazon has hired three of the founders from Covariant, a Bay Area startup specializing in AI for advanced warehouse robotics systems. The company will also receive a non-exclusive license to Covariant’s AI models. The deal, announced just before a long holiday weekend, will see the founders and a portion of Covariant’s employees join Amazon’s Fulfillment Technologies & Robotics team.
Other tech giants, such as Microsoft, are also making similar moves to bring AI experts into their fold. These deals, described as “reverse acquihires,” involve a combination of hiring and licensing agreements that mimic acquisitions. These types of deals have drawn scrutiny from regulators, with Amazon reportedly facing questions from the U.S. Federal Trade Commission related to a previous deal with Adept.
Covariant, founded in 2017, focuses on AI-powered robotics systems for tasks like order picking and sortation in warehouses. The company has a platform called the “Covariant Brain” that automates these tasks. Its clients include companies like McKesson and Otto Group. Amazon’s move to bring Covariant founders on board aligns with its ongoing efforts to automate and optimize warehouse operations using robotics technology.
Financial terms of Amazon’s licensing deal with Covariant were not disclosed, but this partnership signifies Amazon’s commitment to expanding its AI and robotics capabilities in the Bay Area and enhancing automation in its fulfillment centers.