Serve Robotics acquires Vayu Robotics in stock deal

Serve Robotics Inc. (NASDAQ: SERV) announced it has acquired Vayu Robotics, Inc., a company that develops AI navigation technology for urban robots, according to a press release statement.

The acquisition includes upfront consideration of 1,696,069 shares of Serve's common stock, with a potential additional earnout of 560,000 shares contingent on achieving autonomy performance milestones. The transaction also includes warrants to purchase 4,000,000 shares at $10.36 per share, issued to Khosla Ventures, Vayu's lead investor.

Vayu specializes in robot navigation using AI foundation models and operates a simulation-powered data engine. The acquisition aims to combine Vayu's technology with Serve's sidewalk delivery operations and real-world dataset.

Vinod Khosla, founder of Khosla Ventures, will join Serve's advisory board following the transaction. The stock consideration received is subject to a 180-day lockup period, while warrant consideration has a four-year lockup.

"Autonomy is critical to our long-term goal of bringing delivery costs down to $1, and these new capabilities will help us move faster," said Dr. Ali Kashani, CEO and co-founder of Serve Robotics.

Serve operates autonomous sidewalk delivery robots and has completed tens of thousands of deliveries for partners including Uber Eats and 7-Eleven. The company has agreements to deploy up to 2,000 delivery robots on the Uber Eats platform across multiple U.S. markets.

Vayu's team includes founders Anand Gopalan, Mahesh Krishnamurthi and Nitish Srivastava, who bring experience in AI, machine learning, and hardware systems.

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