Amazon.com Inc. (NASDAQ:AMZN) has agreed to pay over $1 billion to buy self-driving vehicle start-up Zoox Inc., a move that will expand the e-commerce giant’s reach into autonomous vehicle technology.
A majority of Zoox investors are getting their money back, with some making a positive return. Lux Capital, DFJ and Atlassian co-founder Michael Cannon-Brooks are some of the investors in Zoox.
The Wall Street Journal reported that the companies were in advanced talks and the deal would value Zoox at $1 billion, about one-third of the $3.2 billion Zoox was valued at during a funding round in 2018. Amazon has stepped up its investment in the car sector in recent years, participating in a $530 million funding round early last year in self-driving car start-up Aurora Innovation Inc.
Amazon is expected to formally announce the Zoox acquisition later on Friday.