Serve Robotics Buys Vayu to Advance $1 Autonomous Deliveries

Serve Robotics, the Nasdaq-listed maker of sidewalk delivery robots, has acquired privately held Vayu Robotics in an all-stock transaction aimed at accelerating the use of large-scale AI models in last-mile logistics. The deal provides Vayu shareholders with 1,696,069 Serve shares immediately and up to 560,000 additional shares if specified autonomy performance goals are met. Khosla Ventures, Vayu’s lead investor, also receives warrants to buy 4 million shares at $10.36, subject to a four-year lock-up. Vayu’s simulation-powered foundation models will be integrated with Serve’s extensive real-world dataset to improve the robots’ ability to navigate complex urban environments and cut delivery costs to about $1 per order. The combination is expected to speed Serve’s entry into new geographies and operating domains such as bike lanes and road margins. As part of the transaction, renowned technology investor Vinod Khosla will join Serve’s advisory board, while Vayu’s engineering team, led by co-founder Anand Gopalan, will move over to the San Francisco-based company. Serve said it retains a solid balance sheet after the acquisition; its shares traded roughly 3 percent higher in pre-market dealings following the announcement.