Covariant, a company specializing in artificial intelligence software for industrial robotics application, has reportedly drawn acquisition interest from Amazon, according to sources cited in a Bloomberg report.
The appeal for Amazon lies in Covariant's ability to provide a unified platform that enables robots from various manufacturers to communicate and be controlled centrally.
This capability aligns with Amazon's ambitions to deepen its robotics expertise and enhance its operational efficiency across its vast logistics network.
Covariant, founded in 2017, secured $246 million in funding from investors such as Index Ventures and Radical Ventures, reaching a valuation of $626 million in a 2023 funding round.
The company's AI software for industrial robots is already utilized by notable firms such as Otto Group, Radial, and McKesson Corp. Covariant has emerged as an attractive acquisition target for Amazon,
which has a strong history of investing in warehouse automation, beginning with its 2012 acquisition of Kiva Systems. Covariant’s software offers a unified platform that enables centralized management and communication between robots from different manufacturers, aligning with Amazon's strategy to streamline its automation processes.
Brittain Ladd, a logistics industry consultant and former Amazon executive, emphasized that this acquisition would allow Amazon to consolidate its automation efforts under one platform.
Amazon’s interest in enhancing its warehouse automation has also led to investments in companies like Instock, Agility Robotics, and Standard Bots. Covariant’s innovative approach to AI and robotics, driven by the research background of its CEO , makes it a strategic fit for Amazon’s expanding automation
initiatives.