Microsoft is reportedly in the final stages of negotiations to invest in California-based autonomous driving startup, Gatik, as part of its cloud partnership with the company. Microsoft plans to invest over $10 million in a financing round that values Gatik at more than $700 million. As part of the deal, Gatik will use Microsoft’s cloud computing platform Azure in the development of autonomous delivery technology for trucks. The terms of the deal could still change, according to sources.
Gatik, founded in 2017 by Gautam Narang and Arjun Narang, focuses on middle-mile, business-to-business logistics for the retail industry. It has launched fully driverless commercial delivery services with Walmart and Loblaw Companies in Arkansas and Ontario, Canada. The company has raised more than $120 million from investors including Koch Disruptive Technologies, Innovation Endeavors, Goodyear Ventures and RyderVentures. Microsoft’s investment in Gatik follows its investment in GM-owned Cruise in January 2021, which valued the company at $30 billion.
The autonomous driving technology sector has faced setbacks due to regulatory concerns over safety and less accessible funding in a slowing market. Recently, Ford and Volkswagen shut down their self-driving technology unit, Argo AI, stating that creating self-driving “robotaxis” would be “harder than putting a man on the moon.”
