Shulou(Shulou.com)11/24 Report--

According to reports in the morning of January 5, Beijing time, Microsoft is in preliminary investment negotiations with California self-driving startup Gatik, which is also part of the cloud computing cooperation between the two sides.

Microsoft plans to invest more than $10 million in Gtik, valuing it at more than $700m, according to people familiar with the matter. As part of the deal, Gatik will use Microsoft's cloud and edge computing platform Azure to develop driverless truck delivery technology.

The specific terms of the deal are still likely to change, people familiar with the matter said.

Microsoft and Gatik declined to comment.

Like many big technology companies, Microsoft has recently been investing more in self-driving cars. In January 2021, Microsoft invested in Gruise, a robot taxi company owned by General Motors, at a valuation of $30 billion. Cruise plans to use Microsoft Azure to accelerate the commercialization of driverless car solutions and compete with Waymo, owned by Alphabet, and Zoox, owned by Amazon.

Self-driving technology is seen as a revolution in the transport and logistics industry, but the industry is facing setbacks because of safety concerns by regulators and a lack of funds caused by slowing market growth.

Last December, Ford and Volkswagen shut down their self-driving technology division, Argo AI, saying that developing self-driving robot taxis was "more difficult than putting a man on the moon."

Gatik was founded in 2017 by industry veterans Gautam Nalang (Gautam Narang) and Arjun Nalang (Arjun Narang), focusing on medium-distance B2B logistics in the retail industry.

Since 2021, the company has partnered with Wal-Mart and Loblaw Companies to launch fully driverless commercial delivery services, with Gatik providing short-haul delivery of vans in Arkansas and Ontario, Canada.

The company has raised more than $120 million so far, with investors including Koch Disruptive Technologies, Innovation Endeavors, Goodyear Ventures and RyderVentures.

In the first quarter of this year, Gatik plans to integrate its self-driving van into Pitney Bowes's e-commerce logistics network in Dallas, Texas, with a view to improving distribution efficiency and reducing logistics costs.

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