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Serve Robotics’ stock price skyrocketed by 241% following Nvidia’s revelation of a stake in the company.
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Nvidia’s investment of $3.7 million in Serve Robotics was in the form of a convertible debt note that was converted in April.
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Serve Robotics specializes in autonomous delivery vehicles for last-mile deliveries.
Shares of Serve Robotics surged by 241% on Friday after Nvidia announced its ownership in the company.
As per a Form 4 filing submitted to the SEC on Thursday, Nvidia bought 1.05 million shares of Serve at $2.42 per share in April, resulting in a total investment exceeding $3.7 million.
The acquisition was in line with a 6.0% convertible debt note that Nvidia held in the company. The debt was converted to equity after Serve Robotics went public in April.
Established in 2017, Serve Robotics designs and operates self-driving vehicles tailored for last-mile delivery services.
The autonomous delivery containers traverse sidewalks and are frequently used to deliver food orders for platforms like Uber Eats.
“Why transport 2-pound burritos in 2-ton cars?” questions Serve on its official website.
Serve Robotics, valued at approximately $275 million on Friday, witnessed a significant surge from its previous valuation of just under $100 million. The company reported revenue of $1 million over the past year.
Per Serve’s investor presentation in May 2024, Nvidia has injected over $12 million into the company. Notable investors also include 7-Eleven and Uber, who collectively invested $11.5 million in Serve Robotics.
The company initiated its services in Los Angeles as its pilot city. It is exploring potential expansions in San Diego, Dallas, and Vancouver as part of its “next phase” of growth.
This is not the first instance of Nvidia disclosing investments in early-stage firms specializing in AI and robotics.
In February, Nvidia revealed relatively small investments in SoundHound AI and Nano X Imaging, resulting in significant fluctuations in their stock prices.
Original article published on Business Insider