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Travis Kalanick's Atoms raises $1.7B for industrial AI and automation

Created at 26 Jul · 4:26 PM1 source↑ Market-relevant
IN SHORT

Travis Kalanick, former Uber CEO, has secured $1.7 billion in capital for his rebranded holding company, Atoms, which focuses on industrial AI and physical automation in mining and transport. Uber itself participated in the funding round.

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Key Numbers

$1.7 billioncapital raised by Atoms
$100 millionUber's investment in Atoms
6 monthsprior to announcement Uber invested in Atoms
36%decline in Tesla's paid robotaxi miles
1.1 million milesTesla robotaxi miles in Q1
700,000 milesTesla robotaxi miles in Q2
5%year-over-year drop in Tesla's net income
$38 millionvalue of Einride's acquisition of Flipturn
$300 millionraised by Sila
100,000 EVsEVs Sila's anode material will support
200driverless trucks Aurora plans by year-end
$30,000starting price for Ford's new midsize truck
68%lower crash rate for Waymo's robotaxis vs human drivers
2022Tesla Model 3 vehicles under NHTSA review

Who's Involved

Travis Kalanick
Uber co-founder and former CEO, now leading Atoms
Atoms
Kalanick's rebranded holding company focused on industrial AI
Andreessen Horowitz
VC firm that led Atoms' $1.7 billion funding round
Uber
Invested $100 million in Atoms
Ben Horowitz
Will join Atoms' board
Anthony Levandowski
Founder of Pronto, acquired by Atoms
Elon Musk
CEO of Tesla, discussed Cybercab data needs
Tesla
Reported drop in robotaxi miles and increased CapEx
Sean O’Kane
Senior reporter who analyzed Tesla's robotaxi data
Einride
Swedish electric and autonomous trucking company
Flipturn
EV charging startup acquired by Einride
IBM
Agreed to buy HRL Laboratories
HRL Laboratories
Quantum computing research lab jointly owned by Boeing and GM
Sila
Battery materials startup that raised $300 million
Aurora
Launched second-generation driverless trucks
Ford
Will integrate Apple Maps into new EVs
Apple
Will provide mapping technology for Ford EVs
Insurance Institute for Highway Safety
Released study on automated vehicle crash rates
Waymo
Robotaxis have lower crash rates than human drivers per study
Amnon Shashua
Founder and CEO of Mobileye, plans to step down
National Highway Traffic Safety Administration
Will investigate vehicle emergency exit requirements
Rivian
Sued the U.S. government over tariffs
President Trump
Associated with 'Liberation Day' taxes
Volkswagen
Two engineers charged with securities fraud
Travis Kalanick's Atoms raises $1.7B for industrial AI and automation

↳ Why This Matters

Travis Kalanick's significant capital infusion into Atoms signals a renewed push into industrial automation and AI, with potential implications for the future of mining and transport. Uber's investment in a former CEO's venture, despite past controversies, highlights a strategic bet on autonomous technology and Kalanick's expertise.

Key facts

  • Travis Kalanick's Atoms has raised $1.7 billion in capital.
  • Uber invested $100 million into Atoms six months ago.
  • Atoms will focus on industrial AI and physical automation for mining and transport.
  • Tesla reported a 36% drop in paid robotaxi miles quarter-over-quarter.
  • Tesla's net income fell 5% year over year in Q2.
  • Aurora launched its second-generation driverless trucks.

Travis Kalanick, the former CEO of Uber, has re-entered the robotics and mobility scene with his rebranded holding company, Atoms, securing $1.7 billion in capital. The funding round was led by venture capital firm Andreessen Horowitz, with participation from Bain Capital, Fifth Wall, and notably, Uber itself, which invested $100 million six months ago.

Atoms plans to focus on industrial AI and physical automation, particularly in the mining and transport sectors. A company email from Anthony Levandowski, founder of Pronto (an industrial automation startup acquired by Atoms), indicated that Pronto will be a core strategic priority, aiming to scale OEM-agnostic autonomy.

This move by Kalanick and Uber's investment comes despite a history of scandals and lawsuits during Kalanick's tenure at Uber, including the acquisition of Levandowski's self-driving truck startup Otto and the subsequent trade secret theft lawsuit filed by Waymo.

In other mobility news, Tesla's recent earnings report revealed a significant drop in paid robotaxi miles, falling approximately 36% quarter-over-quarter. CEO Elon Musk also disclosed that Tesla needs to accumulate specific driving data for its Cybercab, requiring vehicles to be retrofitted with steering wheels and pedals for calibration, a departure from previous claims about leveraging its existing fleet data.

Tesla's Q2 financial results showed increased capital expenditure, a return to negative free cash flow, and a 5% year-over-year decrease in net income.

Other developments in the sector include Einride's acquisition of EV charging startup Flipturn for $38 million, IBM's agreement to buy quantum computing research lab HRL Laboratories, and battery materials startup Sila raising $300 million. Aurora launched its second-generation driverless trucks, and Ford announced plans to integrate Apple Maps into its upcoming EVs. A study by the Insurance Institute for Highway Safety indicated that Waymo's driverless cars have lower crash rates than human drivers.

Frequently asked questions

Atoms is a rebranded holding company led by former Uber CEO Travis Kalanick, focusing on industrial AI and physical automation in mining and transport.

Atoms raised $1.7 billion in a funding round led by Andreessen Horowitz, with participation from Bain Capital, Fifth Wall, and Uber.

Tesla reported a 36% drop in paid robotaxi miles quarter-over-quarter and stated a need to collect specific driving data for its Cybercab.

Uber's $100 million investment in Atoms, despite past controversies with Kalanick, suggests a continued strategic interest in autonomous technology and Kalanick's capabilities.

What Happens Next

01Atoms will use its new capital to scale its industrial AI and automation efforts.
02Tesla will continue to accumulate Cybercab-specific driving data.
03Aurora plans to deploy 200 driverless trucks by the end of the year.
04Ford will begin integrating Apple Maps into its EVs starting in 2027.

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How It Developed

Tesla's shareholder letter and Elon Musk's remarks indicated a shift from previous promises regarding volume production of Cybercab, Tesla Semi, and Megapack 3.
Quarterly data for Tesla's robotaxi service showed a drop in paid robotaxi miles.
Musk disclosed that Tesla needs to accumulate driving data specific to Cybercabs retrofitted with steering wheels and pedals for calibration.
Tesla's Q2 earnings revealed increased capital expenditure and a return to negative free cash flow, with net income falling 5% year over year.
Travis Kalanick's holding company, Atoms, announced a $1.7 billion capital raise led by Andreessen Horowitz, with participation from Bain Capital, Fifth Wall, and Uber.
Ben Horowitz will join Atoms' board following the investment.
Uber invested $100 million into Atoms six months prior to the announcement.
Atoms plans to invest heavily in Industrial AI and physical automation applied to mining and transport, with Pronto being a core strategic priority.

Sources

T1
TechCrunch Mobility: Uber bets on its former CEOTechCrunch

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