Amazon.com Inc. has shown interest in acquiring Covariant, a company specializing in artificial intelligence software for industrial robots, according to sources familiar with the discussions. Both Amazon and Covariant have declined to comment on the matter.
Founded in 2017, Covariant has raised $245 million from investors such as Index Ventures and Radical Ventures. The company was valued at $625 million during a funding round in 2023, as reported by PitchBook.
Covariant’s AI-driven software is used by various clients including Otto Group, Radial, and McKesson Corp., enhancing operations in warehouses through advanced robotics. Amazon’s interest in Covariant stems from the potential to integrate its technology into a unified platform that could coordinate robots from different manufacturers, facilitating centralized management of warehouse automation, explained Brittain Ladd, a logistics consultant and former Amazon executive. “It’s essentially a way for Amazon to streamline all of its automation through a single platform,” Ladd said.
Amazon has been actively seeking to advance its warehouse automation capabilities beyond its acquisition of Kiva Systems in 2012, which revolutionized warehouse efficiency with its robots. The company has also made investments in other robotics firms, including a $3.2 million investment in Instock through the Amazon Industrial Innovation Fund in December, as well as funding Agility Robotics Inc. in 2022 and Standard Bots in July.
Covariant was co-founded by Peter Chen, who launched the company while serving as a researcher in electrical engineering and computer science at the University of California, Berkeley.
