Sumitomo acquires AI startup
Sumitomo Rubber Industries has signed an agreement to acquire Viaduct, Inc., a US-based AI solutions startup, for $104 million.
Previously, the companies had collaborated on the creation of "smart" tires called Sensing Core (which integrated Sumitomo's sensors and Viaduct's AI technologies), and the new deal is expected to enable the tire manufacturer to more effectively implement predictive maintenance services for corporate fleets in North America starting from October this year. Additionally, the acquisition of new assets is expected to help Sumitomo accelerate its expansion in the global market, including in Japan and Europe, and the service offered allows for the prevention of equipment failures and optimization of maintenance efficiency by informing about the optimal replacement schedule of components, creating a synergy with the company's tire business.
In 2023, Sumitomo and Viaduct began joint development of "smart" tires, and in 2024, investments were made in the startup. The new deal, according to the tire company, "is a strategic step aimed at further accelerating business development", while the predictive maintenance service for fleets to be launched in North America will help customers reduce equipment downtime and increase safety levels.
Viaduct, based in Silicon Valley, develops universal AI technologies that enable the analysis of large amounts of data from various equipment using its own algorithms, allowing for the early detection and prediction of deviations from established parameters and identification of their causes. Currently, Viaduct already has experience working with major clients, and in the future, the company plans to expand beyond the automotive sector and increase its presence in other industries. In turn, Sumitomo will use Viaduct's solutions to enhance the functional capabilities of its "smart" tires, implemented using Sensing Core technology. It is expected that in the future, intelligent tires will become Sumitomo's fourth main business area, in addition to standard tires, sports goods, and various industrial products. By 2030, Sumitomo aims to increase sales in the new segment to over 10 billion yen ($68 million), with a focus on solutions for autonomous transportation and fleet management.
"We are preparing for the upcoming era of autonomous mobility, and we are very pleased to have found a reliable partner in Viaduct, which will allow us to expand our range of services taking into account the characteristics of next-generation vehicles," said Satoru Yamamoto, President and CEO of Sumitomo, adding that the company is accelerating the development of its Sensing Core business concept in accordance with its long-term strategy RISE 2035, announced in March this year.
"Through closer collaboration [with Viaduct], we aim to launch innovative services that go beyond simple mobility," he emphasized.
David Hallac, CEO of Viaduct, noted that "we are very pleased to be joining the Sumitomo Group and will work under the guidance of Sumitomo Rubber, our trusted partner, with whom we have been collaborating for many years. We will not only accelerate our development but also ensure the scale and market reach necessary to deliver AI solutions to a larger number of customers around the world".