Apple is interested in acquiring autonomous driving startup Drive.ai for talent

The deal is known as an acqui-hire, where large tech companies buy smaller startups to gain more relevant talent. People familiar with the matter said Apple is considering which employees to keep, and the tech giant will not use any of the startup's intellectual property.

On June 10, according to foreign media reports, sources said Apple is preparing to acquire the autonomous driving startup Drive.ai. People familiar with the matter said that this small deal will bring Apple more engineers with experience in autonomous driving car technology.

It’s unclear how much Apple paid for the deal. Drive.ai has raised about $77 million in funding since its founding in 2015 and was valued at about $200 million in 2017, according to Pitchbook data.

The deal is known as an acqui-hire, when a large tech company acquires a small startup to gain more relevant talent. People familiar with the matter said Apple is considering which employees to keep from the company, and the tech giant will not use any intellectual property of the startup. Apple and Drive.ai did not respond to requests for comment.

"We believe a potential acquisition price would be below the company's recent $200 million valuation," Gene Munster, a senior Apple analyst at venture capital firm Loup Ventures, wrote in a research note.

Drive.ai has been seeking a buyer for some time, according to a person familiar with the company, as the startup struggles to gain sustained momentum. It has a limited number of pilots. In March, it was reported that a previous contract in Frisco, Texas, was not renewed due to high operating costs. The person added that the startup may only have a few experts who can help Apple because Apple's self-driving car technology is already so far ahead.

Apple has been working on self-driving technology for years, with ups and downs. The company recently laid off about 200 employees but has also said it remains committed to the field.

"Apple's primary goal in autonomous driving is to develop widely used autonomous driving systems and related services," Munster said. "Apple's acquisition of Drive.ai will bring in a new group of engineering talent to drive research and development, but we do not expect Apple to launch consumer products or services for more than four years."