Amazon has enlisted the founders of Covariant, a Bay Area startup specializing in AI software for robotic systems, and obtained a non-exclusive license for its AI models. This is part of Amazon's strategy to enhance automation within its fulfillment centers.
Strategic AI and Robotics Initiatives
Covariant's technology will now be a part of Amazon's operations, while the startup continues to operate independently. Co-founders Peter Chen, Pieter Abbeel, and Rocky Duan, along with several team members, are set to join Amazon's Fulfillment Technologies & Robotics division. The approach mirrors Amazon's actions in June when it hired founders from another AI firm, Adept, and arranged a similar licensing deal.
Since its establishment in 2017, Covariant has been focused on creating AI-driven robotic solutions for automating warehouse tasks such as order picking, sorting, item induction, and depalletization. Their AI platform, termed “Covariant Brain,” is crafted to deliver immediate operational benefits and is used by corporations including McKesson, Otto Group, and Radial.
Improving Fulfillment Center Operations
Amazon's fulfillment centers already utilize in-house developed robotic systems to optimize the movement of products and packages. Integrating Covariant's AI technology is anticipated to further improve these systems by increasing safety and efficiency.
The transaction comes at a time when regulatory scrutiny of AI-related deals between tech giants and startups is intensifying. The U.S. Federal Trade Commission has reportedly inquired about Amazon's prior agreement with Adept. Despite this, Amazon continues its strategy of acquiring talent and technology to bolster its capabilities.
Covariant has secured $222 million in funding, with a $75 million Series C round in April 2023, setting its valuation at $625 million. About 25% of Covariant's workforce of 160 employees will move to Amazon, aiding in the development of advanced robotic systems.
Ty Brady, Amazon's Chief Technologist for Robotics, stressed the aim of reducing repetitive and physically demanding tasks in fulfillment centers to improve worker safety and efficiency.
Covariant's AI models are expected to facilitate new methods for generalized robotic learning and dynamic automation. While the exact financial details have not been made public, Amazon highlighted that Covariant's models could enhance the safety and efficiency of its operations.
