Ford to Invest $1 Billion in Artificial Intelligence Start-Up
Beep Beep R2-D2 ... We are here!
The oldest automaker in the U.S. moves into the world of artificial intelligence (AI) ... starting with BIG ideas and a Billion dollar investment over the next five years. The move comes as Ford positions itself as not just a manufacturer of cars, but as a provider of “mobility services,” enabling people to get around without owning cars. That is especially important as companies like Uber and Lyft, ride-hailing services popular in urban areas, have reduced the need for people to have their own vehicles. Ford sees "mobility services" as potentially more profitable than its traditional business of making and selling cars. Manufacturing vehicles requires billion dollar investments in plants and engineering — costs that are often difficult to recoup. Company executives have said mobility services could generate returns of around 20 percent, compared with the 8 percent it earns today on making vehicles.
It is very exciting to see a glimpse into the future as a century old auto company taps into Silicon Valley talent and makes headway as a leader in the competitive space of Artificial Intelligence.