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AI tech company Symbotic Inc. will acquire Walmart’s robotics business for $200 million, the automation firm announced Wednesday.
Biggest news for grocery?
The deal is part of an agreement to expand the retailer’s automated supply chain. Symbotic will work with Walmart to create an AI-enabled robotics platform that will result in accelerated online pickup and delivery options at its delivery centers. Walmart will fund that development program and pay Symbotic $520 million, including some $230 million at closing, for the agreement which includes an initial order affecting hundreds of stores.
It’s already begun
Walmart has already started the process of upgrading its regional distribution centers with high-tech automation systems installed within its Buckeye, Ariz., and Searcy, Ark., locations late last year. Once complete, the centers will be able to ship nearly double the number of cases compared to a traditional regional distribution center while evolving manual jobs into those that offer new skills in robotics and tech.
By the numbers
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Walmart has been using Symbotic’s software and robotics platform at all 42 regional distribution centers in the U.S since 2017
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The retailer’s store-fulfilled deliveries grew almost 50% year over year in the third quarter last year