In the last few years, artificial intelligence and warehouse automation vendors have seemingly had little difficulty obtaining financial backing for their efforts.
Supply Chain Digest Says...
|
 |
| GreenBox will use the technology to offer “Warehousing-as-a-Service,” operating like a 3PL and enabling companies that lack the scale or capital to invest in such high levels of automation |
 |
What do you say? |
| Click here to send us your comments |
 |
| |
|
Put AI and automation together, and you probably really have an opportunity.
That’s exactly what played out this week with the forming of a new joint venture between AI-powered warehouse robotics company Symbotic and giant Japanese investment firm Softbank.
The joint effort will be named GreenBox Systems, funded with a combined $100 million from Softbank and Symbotic to establish the joint venture.
But as part of the deal, Greenbox will buy $7.5 billion of Symbotic’s systems for the distribution centers, according to a statement Monday.
That multi-billion purchase, to be rolled out over six years, will add to Symbotic’s apparent current order book of some $12 billion.
That includes a major deal with Walmart, which announced in 2022 that it was was planning to deploy the Symbotic system in all 42 of its regional distribution centers (RDCs). See Upon Apparent Success, Walmart Commits to Rolling Out the Symbotic Robot System in All 42 US Regional DCs
GreenBox will use the technology to offer “Warehousing-as-a-Service,” operating like a 3PL and enabling companies that lack the scale or capital to invest in such high levels of automation to enjoy some of the benefits.
“GreenBox taps into the powerful potential of AI and other enabling technologies in supply chains, while also making the benefits of automation accessible to more businesses through an ‘as-a-service’ offering,” SoftBank’s Vikas J. Parekh said in a release. “In partnership with Symbotic, GreenBox will equip customers with more intelligent, streamlined, and scalable warehousing solutions while eliminating the burden of major capital expenditures.”
SoftBank will own 65% of GreenBox versus Symbotic’s 35%. SoftBank also announced that it has acquired 17.8 million shares of Symbotic. SoftBank already owned about 5% of Symbotic, and is upping its stake via the purchase of 17.8 million shares in the company from Symbotic Chief Executive Officer Rick Cohen.
(See More Below)
The Symbotic’s technology includes autonomous mobile robots, with arms that can pick, place and depalletize, according to the Tech Crunch web site.
The company expects in excess of $500 million in annual recurring software, parts and services revenue from GreenBox once all systems are operational. Symbotic systems typically become fully operational within 24 months of project design approval, according to the company.
Any thoughts on this GreenBox move? Let us know your thoughts at the Feedback section below.
|
