In a strategic move to enhance its robotic capabilities, Amazon announced the hiring of Covariant’s founders – Pieter Abbeel, Peter Chen, and Rocky Duan, along with approximately a quarter of the startup’s employees. This acquisition not only brings fresh talent to Amazon but also provides the tech giant with a non-exclusive license to utilize Covariant’s robotic foundation models.
Covariant has been working on developing AI models specifically designed for robots, with a primary focus on enhancing warehouse tasks such as bin picking. This innovative approach aims to revolutionize the way robots operate in warehouse environments, making them more efficient and productive. By embedding Covariant’s AI technology into its existing robot fleet, Amazon aims to improve performance and deliver added value to its customers.
Reverse Acquihire Strategy
Amazon’s acquisition of Covariant resembles a “reverse acquihire” strategy, where large tech companies leverage hiring and licensing deals to access new talent and technology without fully acquiring the startup. This approach allows companies like Amazon to enhance their capabilities while avoiding scrutiny from antitrust regulators. The deal with Covariant follows a similar pattern to Amazon’s previous hiring of the founders of AI startup Adept, indicating a strategic shift towards incorporating external expertise into its operations.
Despite the acquisition, Covariant will continue to operate under the leadership of Ted Stinson and Tianhao Zhang. With Stinson taking on the role of CEO, the startup remains committed to driving innovation in the field of robotics and AI. This leadership continuity ensures a smooth transition post-acquisition and maintains the integrity of Covariant’s vision moving forward.
Amazon’s latest acquisition of Covariant’s founders and employees marks a significant milestone in the integration of AI technology into robotics. By leveraging external expertise and cutting-edge technologies, Amazon aims to enhance its operations and deliver improved services to its customers. The strategic acquisition of Covariant highlights the growing importance of AI in reshaping the future of robotics and automation.