In a significant development within the emerging air taxi sector, Archer Aviation, Boeing, and Wisk have recently come to a comprehensive agreement to resolve ongoing litigation and embark on a collaborative journey in advancing autonomous technology for their respective aircraft. This strategic partnership, unveiled on Thursday, marks a significant step forward for these industry leaders as they collectively strive to reshape urban air mobility.
Archer Aviation, a notable air taxi manufacturer, concurrently announced the successful conclusion of a substantial equity investment round, securing a total of $215 million in funding. This investment round encompassed contributions from key stakeholders such as Stellantis, Boeing, United Airlines, and ARK Investment Management. With this infusion of capital, Archer’s cumulative funding surpasses the $1.1 billion mark, strengthening the company’s pursuit of Federal Aviation Administration certification and the commencement of commercial operations scheduled for 2025.
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A joint statement released by Archer, Boeing, and Wisk highlights the pivotal aspect of their collaboration – Wisk’s exclusive role as the provider of autonomy technology for forthcoming iterations of Archer’s aircraft. The accord not only brings together industry prowess but also signifies a turning point in the legal battles that have ensued. This settlement effectively puts an end to multiple lawsuits that have been ongoing between the involved parties.
Boeing, a globally renowned aerospace corporation, is not only providing vital support for Wisk’s autonomy technology integration into Archer’s future aircraft variants but is also demonstrating its commitment through a direct investment in Archer itself. Boeing’s enthusiasm for Wisk’s progress in achieving certification and introducing the first all-electric, self-flying air taxi in the United States is palpable, as they remain dedicated to facilitating Wisk’s objectives.
This agreement is a significant milestone in the trajectory of both Archer and Wisk. The genesis of Wisk can be traced back to a collaborative endeavor between Boeing and Kitty Hawk Corp, founded by Google’s co-founder Larry Page. Wisk had previously taken legal action against Archer, alleging theft of trade secrets and patent infringement, while Archer responded with counterclaims against Wisk and Boeing. With this settlement, the past disputes are now definitively laid to rest.
Under the terms of the resolution, Archer will issue warrants to Wisk for up to 13.2 million shares, underscoring the commitment to a harmonious partnership. The accord also holds strategic implications for the broader sector of electric vertical takeoff and landing aircraft (eVTOL), which is widely regarded as the future of urban air mobility. The intensified global interest in low-altitude urban air mobility is demonstrative of the potential transformative impact of this technology on urban transportation dynamics.
The $215 million funding package encompasses a significant contribution of $70 million from Stellantis, the parent company of Chrysler, in alignment with their strategic funding agreement established in 2023. This infusion of capital comes on the heels of Stellantis’ earlier announcement of collaborating with Archer Aviation in the construction of electric aircraft and augmenting their stake in the U.S.-based company.
