The race of AI continues, Robo.ai to acquire Neurovia for $100 million in all-stock deal

Robo.ai Inc. (NASDAQ: AIIO) announced an agreement to acquire 100% of Neurovia AI Limited for $100 million in an all-stock transaction. The deal remains subject to customary closing conditions.

Neurovia specializes in data processing and compression technology, focusing on AI video compression, edge computing, and real-time analysis. The acquisition will be paid entirely through the issuance of Robo.ai’s Class B ordinary shares.

The transaction includes an eight-year equity lock-up structure. All issued shares will be subject to complete lock-up for three years following closing, then vest gradually over five years starting in the fourth year.

Robo.ai plans to integrate Neurovia’s technology to upgrade its video codec operations into a global AI video data infrastructure platform. The combined platform aims to support robotaxis, autonomous vehicles, unmanned delivery systems, smart cities, AI camera networks, drone platforms, humanoid robots, and smart manufacturing systems.

The company stated that video data serves as the primary data source in physical AI applications, creating challenges for compression, transmission, edge processing, and cloud analysis of data generated by AI machines.