JAKARTA - Microsoft Corp is in advanced talks to invest in Gatik, a California-based autonomous driving startup. Two sources told Reuters this was part of a cloud partnership with the company.

Microsoft plans to invest more than USD 10 million (IDR 155 billion) in a financing round that will value Gatik at more than USD 700 million (IDR 10.8 trillion), the sources added. As part of the agreement, Gatik will use Microsoft Azure's cloud and edge computing platforms to develop autonomous delivery technology for trucks.

But the terms of the deal could still change, the sources added. While Microsoft and Gatik declined to comment on the leak.

Like other big tech companies, Microsoft has recently been steadily investing money into self-driving technology. In January 2021, Microsoft invested in General Motors' robotaxis-focused Cruise in a deal that valued the company at $30 billion.

Cruise plans to use Azure to enhance its autonomous vehicle solutions for commercial use, and compete with Alphabet's Waymo and Amazon's Zoox.

Autonomous driving technology is seen as revolutionary for the transport and logistics industry, but has faced setbacks due to regulatory concerns over safety and less accessible funding in a slowing market.

In November, Ford and Volkswagen closed their self-driving technology unit, Argo AI, saying that creating a self-driving "robotaxis" would be "more difficult than putting a man on the moon."

Gatik, a startup founded in 2017 by industry veterans Gautam Narang and Arjun Narang, is now focusing on medium-haul business-to-business logistics delivery for the retail industry.

Since 2021, Gatik has launched a driverless commercial delivery service with Walmart Inc and Loblaw Companies Ltd, where Gatik offers short-distance delivery by box truck in Arkansas and in Ontario, Canada.

They have raised more than $120 million from investors including Koch Disruptive Technologies, Innovation Endeavors, Goodyear Ventures and RyderVentures.

In the first quarter of this year, Gatik plans to integrate class 6 autonomous box trucks into Pitney Bowes' e-commerce logistics network in Dallas, Texas, with the aim of increasing delivery and reducing logistics costs.


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