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Delphi buys self-driving startup NuTonomy for $450M

26 October 2017
Delphi buys self-driving startup NuTonomy for $450M

So, Delphi plans to add nuTonomy's 100 employees to its existing 100-person Ottomatika team and says the resulting combination will have operations in Singapore and various USA locations.

Cambridge, Massachusetts-based nuTonomy was founded in 2013 to create software-based solutions for self-driving vehicles and autonomous robots that OEM's can use to automate transportation solutions. There has been this custom where big auto companies and suppliers have placed their trust into small startups by investing a huge portion of their money, in the race of becoming the first one to deploy a fully self-driving vehicle.

Glen De Vos, CTO of Delphi explained the reason behind the purchase of NuTonomy that Delphi wants to become a leader in Autonomous vehicles and they are especially looking forward to scale up in commercial vehicles.

Delphi acquired Carnegie Mellon University spinoff Ottomatika in 2015 to bolster its self-driving software capabilities and has snapped up other startups to assemble the pieces of an affordable self-driving system it's developing with Intel Corp. and its Mobileye unit that it will begin selling to carmakers in two years. Delphi now has the luxury of two, independent autonomous vehicle software stacks - one developed in Pittsburgh and one in Boston - at its disposal.

The price tag for Delphi's purchase isn't uncommon nowadays, as automakers and tech companies have been working at a ferocious pace to bring autonomous cars to life. "Within Delphi we can focus on building technology".

DeVos was cagey on specifics about domestic, large-scale deployments of self-driving cars. By the end of the year, Delphi says it'll have 60 autonomous cars testing in cities across three continents.

Delphi will have AD operations in Boston, Pittsburgh, Singapore, Santa Monica, and Silicon Valley. nuTonomy will continue to be based in Boston, where both companies now operate AMoD pilot programs. This will increase Delphi's customer base and expand its market. That now could happen as early as 2019, DeVos said. Plus, the companies both already have pilots in Singapore and soon Boston.

The transaction is to accelerate Delphi's commercialization of autonomous driving and Automated Mobility on-Demand (AMoD) solutions for auto manufacturers and a new market globally. The company announced in September it would spinout its self-driving and advanced technology efforts into a new company called Aptiv.