Amazon has dedicated nearly two years to utilizing a portion of its $1 billion Industrial Innovation Fund, making strategic investments in nearly a dozen startups across the U.S. and Israel that focus on logistics, supply chain optimization, and customer fulfillment. Recently, the fund's new head, Franziska Bossart, shared insights about ambitions to broaden its geographical reach and delve into generative AI technologies that align with Amazon’s overarching mission.
Launched in April 2022, the Amazon Industrial Innovation Fund remains committed to discovering and funding startups that can enhance the e-commerce giant's capacity to deliver goods more efficiently while also improving the experiences for customers and warehouse employees. This initiative builds upon Amazon’s prior investments in AI and robotics, which have resulted in significant operational advancements, including the integration of robotic arms for repetitive tasks and autonomous vehicles designed to transport larger items. The fund's initial investments in 2022 were directed towards five startups developing robotics and wearable technology aimed at enhancing safety within fulfillment centers.
After a reportedly slow start, with only $110 million invested in its first year, the pace of funding has accelerated since the spring of 2023. Recent investments include partnerships with innovative companies such as Veo Robotics, the computer vision firm Flymingo, industrial wireless solutions provider CoreTigo, Rightbot, and Instock. Notably, Bossart mentioned a recent investment in a generative AI startup whose technology is anticipated to significantly impact robotics.
“There’s been a notable increase in momentum with the fund, particularly as we approach the end of the year,” Bossart commented.
The fund's vision is expanding both geographically and thematically. Bossart identified potential markets in Europe and Asia, expressing a desire for the portfolio, predominantly composed of early-stage startups, to include a greater proportion of later-stage investments. She also shared insights about the fund’s evolution in a recent company blog post.
Bossart is focusing her attention on three critical areas: advancements in AI, the rise of bipedal and humanoid robots, and the pursuit of startups developing autonomous vehicle technologies that can enhance mid-mile and last-mile delivery systems.
While Amazon's engagement with AI is not new, Bossart sees vast potential for generative AI applications in robotics and automation. Unlike traditional machine learning, which allows systems to learn from existing data, generative AI creates new information that can enhance perception, manipulation, and control operations in automation. “Many startups face challenges in accessing large datasets for AI training,” she explained. “Amazon possesses one of the largest datasets available.”
Robotics has always been a pivotal focus for Amazon, a company heavily reliant on automation to achieve its delivery objectives. Bossart highlighted the fund's interest in humanoid robots, specifically mentioning its investment in Agility Robotics, an Oregon-based startup renowned for its bipedal robot, Digit.
As of October 2023, Amazon is testing Agility’s robotic system, Digit, at its BFI1 R&D facility near Seattle. Despite ongoing collaboration with Agility, Bossart remains open to investing in other companies pushing the boundaries of this technology.
“Mobile manipulation presents remarkable opportunities,” she noted, emphasizing the potential for bipedal robots to collaborate with humans to enhance workplace safety. Data indicates that Amazon Robotics locations saw a 15% reduction in recordable incident rates and 18% fewer lost-time incidents compared to non-robotic sites in 2022.
Bossart also recognizes the importance of mid- and last-mile delivery solutions to expedite package delivery. This interest isn't solely limited to autonomous vehicle startups; she is on the lookout for innovations across the entire supply chain, including small automation tools that facilitate faster package unloading.
Though Amazon prioritizes startups that could contribute to its ecosystem, Bossart underscores that the fund’s investments are not strictly tied to commercialization. “We’re experimental at our core,” she stated.
The Amazon Industrial Innovation Fund is just one of many investment initiatives under Amazon's umbrella. The company has a longstanding tradition of supporting firms at the forefront of new technologies and services integral to its operational goals. Additionally, Amazon occasionally opts to acquire these emerging companies fully.
In 2020, Amazon unveiled the $2 billion Climate Pledge Fund, designed to invest in sustainable technologies and services to help the company achieve its commitment to net-zero carbon operations by 2040. To date, this climate fund has provided support to over a dozen companies, including CarbonCure, CMC Machinery, Pachama, Redwood Materials, Resilient Power, Rivian, TurnTide Technologies, BETA Technologies, Ion Energy, ZeroAvia, and Infinium.
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