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Apple Bails Out Drive.ai With Last-Minute Acquisition

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Apple Bails Out Drive.ai With Last-Minute Acquisition

Self-driving startup Drive.ai was days away from shutting down its operations before it was acquired by Apple Inc. (NASDAQ: AAPL), according to The Verge.

What Happened

Drive.ai was founded in 2015 by machine learning researchers at Stanford University and is among the more exciting autonomous driving startups, according to The Verge.

The company is best-known for employing deep learning technologies that prevent autonomous cars from hitting objects on the road.

The price tag Apple paid for the startup, which was once valued at $200 million, is not known. Drive.ai reportedly filed a notice with regulatory bodies that it planned on shutting down the business and laying off 90 employees Friday.

Why It's Important

The acquisition signals that Apple continues to show an interest in self-driving car technology, CNBC said.

This could mark a shift in strategy: the iPhone maker slashed 200 employees from its internal Project Titan early this year. 

What's Next

It's unclear what Apple plans to do with its acquisition, and it is possible Drive.ai's mass layoffs will still occur, with Apple keeping its assets and existing self-driving car fleet, according to the Verge.

Apple shares were trading higher by 2.53% at $200.52 at the time of publication Wednesday. 

Related Links:

Apple's Self-Driving Technology Project Might Get A Boost With Drive.ai's Acquisition

Apple Executives Unhappy With Car Unit 'Project Titan,' New Report Says

Photo courtesy of Drive.ai. 

Posted-In: autonomus AV CNBC Project TitanM&A News Startups Media Best of Benzinga

 

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Self-Driving Start-Up Drive.ai Acquired By Apple