Serve Robotics acquires Vayu to advance AI-powered delivery

Serve Robotics, an autonomous sidewalk delivery company, has acquired Vayu Robotics, a developer of AI foundation model-based navigation for robots. The deal marks a strategic step in Serve’s mission to expand its autonomous delivery capabilities and enter new geographies.

In an official statement, Serve said the acquisition will accelerate the adoption of ‘end-to-end learned autonomy’ to improve the safety, reliability, and efficiency of its delivery fleet. By combining its autonomy stack and real-world operational data with Vayu’s expertise in AI foundation models and simulation-powered training, Serve aims to enhance navigation performance and reduce delivery costs.

The company highlighted several expected benefits of the integration: faster development of its third-generation robots powered by the NVIDIA Orin edge AI platform, expanded AI training through high-speed simulation, and potential entry into new delivery environments such as bike lanes and road margins. Serve also expects to unlock opportunities in additional customer categories and global markets.

Vayu’s engineering and leadership team will join Serve as part of the transaction. Vayu’s founders – Anand Gopalan, Mahesh Krishnamurthi and Nitish Srivastava – bring experience in AI, machine learning and robotics hardware systems.

Vinod Khosla, founder of Khosla Ventures and Vayu’s lead investor, will join Serve’s Advisory Board. Commenting on the deal, Khosla said, “AI models are driving a new class of robotics across a range of industries. We invested early in Vayu because last-mile delivery stood out as one of the applications where autonomous delivery robots could create immense value. Today’s acquisition combines Vayu’s technological breakthroughs with Serve’s large footprint to accelerate faster, safer and more cost-effective delivery.”

Dr. Ali Kashani, CEO and co-founder of Serve Robotics, mentioned, “With this acquisition, Serve solidifies its leadership position, not just in current robotic delivery operations, but in shaping the future of autonomous robotic navigation. This step marks a significant milestone in Serve’s roadmap toward wide-scale deployment of autonomous robots on sidewalks across the nation, aligning with industry predictions of rapid robot adoption. Autonomy is critical to our long-term goal of bringing delivery costs down to $1, and these new capabilities will help us move faster.”

Anand Gopalan, CEO of Vayu Robotics, added, “We are thrilled to join the Serve team and apply our AI foundation model technology, talent and expertise to accelerating the development of their autonomous delivery platform. Serve is differentiated by unmatched operational depth, a proven ability to deploy robots at scale, and a relentless focus on driving down cost per delivery through autonomy. Combined with a strong balance sheet and a bold, clear-eyed vision, Serve is uniquely positioned to lead the future of last-mile logistics. We’re proud and excited to be building that future together.”

Serve also mentioned in the official release that the acquisition included an upfront payment of 1,696,069 shares of common stock to Vayu shareholders, subject to adjustments. An additional earnout of 560,000 shares may be issued based on performance milestones. Khosla Ventures, a Vayu SAFE holder, received warrants to purchase 4 million shares of Serve common stock at an exercise price of $10.36 per share.

“Some Vayu stockholders may also receive cash in lieu of shares. The transaction includes customary representations and warranties of the parties and an escrow to cover any indemnifiable expenses or liabilities. The stock consideration received in the transaction is subject to a 180-day lockup and the warrant consideration received in the transaction is subject to a four-year lockup. Following the acquisition, Serve will continue to have a strong balance sheet and expects to continue to have access to sufficient capital,” added the company release.

Vayu Robotics builds AI foundation models to create scalable, sustainable, and affordable robotics, leveraging expertise in machine learning, sensing, and production. Serve Robotics, on the other hand, spun off from Uber in 2021, develops AI-powered, low-emission sidewalk delivery robots and has completed tens of thousands of deliveries, with contracts to deploy up to 2,000 robots for Uber Eats across U.S. markets.

This article was originally published on The STAT Trade Times.