A Houston-based autonomous trucking company is ready to make a splash in an ascending industry.
Recent advancements in AI, including ChatGPT, have accelerated Bot Auto’s autonomous model, Bot Auto Vice President of Commercialization John Verdon told Equipment Finance News. The company recently raised $20 million for the development of its AI-driven autonomous technology.
“Foundation models, which emerged as a paradigm shift in 2022, are large-scale models trained on massive amounts of data and capable of performing a wide range of tasks,” he said. “These models have improved neural network architectures and enhanced data processing capabilities, leading to increased accuracy and reliability of our autonomous trucks.”
Bot Auto’s AI technology uses cameras and LiDAR to perceive the environment around the truck and collect data. The data is then processed by machine-learning algorithms to detect obstacles and predict behavior of other drivers in real time.
Autonomous trucking can enhance the efficiency and reliability of freight transportation to “reduce delivery times, lower fuel consumption and minimize the environmental impact of trucking operations,” Verdon said.
Autonomous trucking can also increase the longevity of a vehicle and reduce maintenance costs by minimizing the possibility of human error, Chris Grivas, president of Chadds Ford, Pa.-based CAG Truck Capital, told EFN.
“We finance engine overhauls, and I can’t tell you how many warranties get voided because the person behind the wheel ignored the check engine light and said, ‘I’ll just wait until the next exit to get off,’” he said. “You’re not going to have that abuse of the vehicle” with autonomous trucks.
The investors in Bot Auto’s pre-series A funding round were Brightway Future Capital, Cherubic Ventures, EnvisionX Capital, First Star Ventures, Linear Capital, M31 Capital, Taihill Venture, Uphonest Capital and Welight Capital, according to a Sept. 27 release.
Slow, steady growth
Bot Auto is taking a slow-and-steady approach to scaling its operations and plans to avoid hiring and expanding too soon. The company will begin adding trucks to its fleet in the next 12 to 18 months, with a goal of significant expansion in five years, Verdon said.
“We will not prematurely scale our operation or increase our truck count rapidly until the technology and product are ready,” he said.
Overcoming obstacles
The autonomous commercial truck market is projected to grow 16.2% annually to $6.9 billion by 2028 from $3.3 billion in 2023, according to BCC Research, a market research and analytics firm. However, challenges could hinder the autonomous trucking movement.
“These include public acceptance and the need for the trucking ‘eco-system’ to continue to mature for scaled operations,” Verdon said. “For example, having redundant chassis ready in the next three to four years to scale operations.”
Verdon said he doesn’t expect obtaining financing for autonomous trucks to be difficult. Once the economics are proven, financing “can fit within existing truck financing models or draw inspiration from the airline finance model.”
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