Amazon eyes AI, autonomous vehicles and Asia as $1B industrial innovation fund evolves

2 mins

AI FOR Business

08 March 2024, 09:25AM

In BriefAmazon's $1 billion industrial innovation fund, launched in April 2022, focuses on startups improving logistics, supply chain, and customer fulfillment.
Initially slow, the fund picked up momentum in spring 2023, investing in companies like Veo Robotics, Flymingo, CoreTigo, Rightbot, and Instock.
Led by Franziska Bossart, the fund aims to expand geographically, targeting Europe and Asia, while shifting towards later-stage startups.
Key areas of interest include AI, bipedal/humanoid robots, and autonomous vehicles, crucial for Amazon's delivery capabilities.
Safety is prioritized, with robotics seen as a solution to reduce injuries. Bossart also explores innovations in middle- and last-mile delivery solutions.

Amazon eyes AI, autonomous vehicles and Asia as $1B industrial innovation fund evolvesAmazon's $1 billion industrial innovation fund, established in April 2022, has been diligently investing in startups focused on enhancing Amazon's logistics, supply chain, and customer fulfillment operations. Initially, the fund faced a slow start, with only $110 million invested in its first year. However, momentum has surged since spring 2023, with notable investments in companies like Veo Robotics, Flymingo, CoreTigo, Rightbot, and Instock. The fund has even ventured into the realm of generative AI, with Bossart noting its potential impact on robotics.
Bossart, the fund's newly appointed head, aims to broaden its scope both geographically and thematically. She sees opportunities in Europe and Asia and is keen to shift the portfolio towards more later-stage startups. Moreover, Bossart is targeting three key areas: AI, bipedal/humanoid robots, and autonomous vehicles, all crucial for advancing Amazon's delivery capabilities.
In the realm of AI, Bossart is particularly interested in generative AI, which could revolutionize robotics and automation. She emphasizes the importance of startups gaining access to large datasets, an area where Amazon's vast resources could prove invaluable. Additionally, the fund continues to explore investments in bipedal robots, exemplified by its backing of Agility Robotics.
Safety is a top priority for Amazon, and Bossart sees potential in robotics for reducing injuries in fulfillment centers. The company has already observed lower incident rates at sites with robotics compared to non-robotics sites. Furthermore, Bossart is exploring innovations in middle- and last-mile delivery solutions, including technologies for unloading packages faster and improving overall efficiency.
While the fund seeks technologies that could integrate seamlessly into Amazon's operations, Bossart emphasizes its experimental nature. This approach aligns with Amazon's broader investment strategy, which includes initiatives like the Climate Pledge Fund aimed at fostering sustainability.
Overall, the Amazon Industrial Innovation Fund represents a significant commitment to driving innovation within the company and the broader industry. With Bossart at the helm, the fund is poised to make strategic investments that will further propel Amazon's leadership in e-commerce and logistics.