Archer Aviation to acquire three Boeing subsidiaries for physical AI expansion

US-based Archer Aviation has signed definitive agreements to acquire Boeing subsidiaries Wisk Aero, SkyGrid, and Insitu, aiming to expand its capabilities in physical AI technology.

Key Details of the Acquisition

The agreement will see Archer integrate:

• Wisk Aero's autonomous flight expertise, developed over 16 years
• SkyGrid's digital air traffic management tools
• Insitu's unmanned aircraft systems (UAS) portfolio, deployed with armed forces in 35 nations

According to Archer and Boeing, these companies have collectively completed nearly two million flight hours across their platforms.

Strategic Objectives

Archer stated that the acquisition will enable the company to offer a comprehensive "physical AI platform" within the aerospace and defence sectors. The combined technology is expected to bolster Archer's ZEE AI platform, providing an end-to-end offering in areas such as:

• Air taxis
• Unmanned aircraft systems (UAS)
• Air traffic management

Executive Commentary

Adam Goldstein, Archer founder and CEO, said:

"This is a watershed moment for Archer and the future of physical AI in aerospace and defence. This is the next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business."

Technology-Sharing and Collaboration

As part of the transaction, Archer and Boeing will enter a technology-sharing and collaboration arrangement. Boeing will retain access to Wisk's core autonomous flight technology for its own commercial and defence aircraft, and will maintain a stake in Archer, allowing it to benefit from future developments.

Brian Yutko, Boeing's Commercial Airplanes Product Development vice president, said the deal allows the acquired companies to "accelerate capability development and time to market," while Boeing shifts its focus to its core business areas.

Company Backgrounds

• Wisk has designed, built, and flown six generations of electric vertical takeoff and landing (eVTOL) aircraft, completing more than 1,700 flight tests.
• SkyGrid has developed an aircraft-agnostic digital platform for air traffic management, facilitating scalable automation and coordination for the aviation ecosystem.
• Insitu, with offices on several continents, delivers uncrewed systems and AI-enabled solutions in support of defence and surveillance operations.

Financial and Regulatory Details

Financial terms of the agreements were not disclosed. The deals are subject to regulatory approval and satisfaction of agreed-upon conditions, and are expected to close by the end of 2026.