Sarcos Technology and Robotics Corporation (Sarcos) has announced its decision to pivot its business strategy towards the development of its robotic artificial intelligence (AI) and machine learning (ML) software platform. This strategic shift comes as a result of a thorough analysis of the company’s business, which revealed the significant revenue opportunity presented by their AI software platform in the near- and mid-term.
Laura Peterson, President, and CEO of Sarcos emphasized the power of their software, stating that it offers a valuable solution for training and managing industrial robots in complex and dynamic environments. The company envisions its AI software platform as a means to drastically reduce robotic training times while enhancing their agility and versatility. This development aims to enable industrial robots to perform a wide variety of tasks similar to human capabilities.
Sarcos has been working on its AI software platform since 2017 and received funding from the U.S. Air Force for its development. The company anticipates launching a version of the platform compatible with most industrial robots by the first half of 2024, with subsequent versions featuring additional enhancements planned for release by the end of the same year.
To devote resources to the AI focus, Sarcos has made the difficult decision to suspend the commercialization efforts of its subsea, aviation, and solar robotics hardware programs. However, the company will continue to address these markets through its AI/ML software platform.
As a result of this strategic shift, Sarcos will reduce its workforce by approximately 150 employees. The affected employees will receive the required 60 days’ notice of termination in accordance with the Worker Adjustment and Retraining Notification (WARN) Act. In addition to reducing their workforce, Sarcos intends to close its Pittsburgh office and consolidate its operations in Salt Lake City.
Overall, Sarcos believes that prioritizing its AI software platform aligns with its goal of pursuing significant near-term revenue opportunities while reducing capital requirements and risks. By decoupling their software from their robotic systems, the company aims to reach a wider market more efficiently. This strategic move positions Sarcos for long-term value creation and profitability without the need for additional financing.
1. What is Sarcos Technology and Robotics Corporation?
Sarcos Technology and Robotics Corporation is a leading company specializing in advanced robotic technology aimed at improving the capabilities and productivity of robotic systems.
2. What is the focus of Sarcos’ new business strategy?
Sarcos is shifting its focus to the development of a robotic artificial intelligence (AI) and machine learning (ML) software platform. This platform aims to reduce robotic training times and enhance the agility and versatility of industrial robots.
3. What are the anticipated benefits of Sarcos’ AI software platform?
The AI software platform developed by Sarcos is expected to enable industrial robots to perform a wider range of tasks, similar to human capabilities. It will also significantly reduce the time required for robot training.
4. How has Sarcos adjusted its operations to prioritize the AI software platform?
To allocate resources to the AI focus, Sarcos has suspended its efforts to commercialize its subsea, aviation, and solar robotics hardware programs. The company will continue to cater to these markets through its AI/ML software platform.
5. What workforce changes will occur as a result of this strategic shift?
Sarcos will reduce its workforce by approximately 150 employees. The affected employees will receive the required 60 days’ notice of termination, in line with the Worker Adjustment and Retraining Notification (WARN) Act.