Robo.ai Inc. (NASDAQ:AIIO) said Thursday it agreed to acquire Neurovia AI Limited, a data processing and compression technology company, in a $100 million all-stock deal aimed at expanding infrastructure for the growing physical AI market.
The Dubai-based company said it will acquire 100% of Neurovia’s equity interests, subject to customary closing conditions. Shares of Robo.ai surged following the announcement.
Focus Shifts Toward Physical AI Infrastructure
Robo.ai said the acquisition strengthens its strategy to build foundational infrastructure for what it describes as the “machine economy,” where AI-powered systems increasingly rely on real-world data generated by autonomous machines and connected devices.
The company said demand for storing, processing, transmitting and analyzing large volumes of real-time data is accelerating as industries transition from digital AI applications to physical AI systems.
Neurovia’s management said video data has become “the primary data inlet in the physical AI era,” creating growing challenges around compression, edge processing, cloud analysis and real-time transmission. The company added that its technology is designed to address those bottlenecks.
Following the acquisition, Robo.ai plans to expand beyond traditional video codec operations and build a broader AI video data infrastructure platform. The company said the platform will support applications including robotaxis, autonomous vehicles, unmanned delivery systems, smart cities, AI camera networks, drones, humanoid robots and smart manufacturing.
Long-Term Lock-Up Structure
Robo.ai said the transaction will be paid entirely through the issuance of Class B ordinary shares, allowing the company to preserve liquidity for research, development and expansion initiatives.
The agreement also includes an extended equity lock-up structure designed to align long-term interests. Shares issued in the transaction will remain fully locked up for the first three years after closing, followed by gradual vesting over the next five years.
Looking ahead, Robo.ai said it plans to focus on integrating AI hardware, video data, edge AI and blockchain technologies. The company is also expanding across Middle Eastern and Asian markets, targeting opportunities tied to smart cities, sovereign AI infrastructure and autonomous driving systems.
AIIO Price Action: Robo.ai shares were up 50.88% at $0.88 during premarket trading on Friday, according to Benzinga Pro data.
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