[HN Gopher] Hyundai acquires controlling stake in Boston Dynamic...
       ___________________________________________________________________
        
       Hyundai acquires controlling stake in Boston Dynamics for $880M
        
       Author : sidcool
       Score  : 357 points
       Date   : 2021-06-22 04:40 UTC (18 hours ago)
        
 (HTM) web link (finbold.com)
 (TXT) w3m dump (finbold.com)
        
       | ineedasername wrote:
       | For years they made the news with bots that seemed to have direct
       | defense/militaristic use.
       | 
       | Not too long ago, or at least the last time I remember them
       | hitting my news streams, was when they demonstrated a bot capable
       | of handling moderately complex warehouse tasks.
       | 
       | If my reading of this sequence of events is correct, it is
       | probably no coincidence that foreign investment came in after
       | applications shifted from tactical militaristic use that would
       | likely be restricted to the US & allies, and now also includes
       | applications more generally applicable to uses outside of
       | warfare.
       | 
       | It seems that military applications may be compelling, but
       | plowshares are more economically interesting.
        
         | Judgmentality wrote:
         | That's not what happened. The military flat out rejected their
         | robots for being too big, too loud, and too slow. So they
         | pivoted to try to find a new customer.
        
           | ineedasername wrote:
           | I think my comment generally still holds: after their pivot
           | they received more commercial interest.
           | 
           | But no, I wasn't aware that they had failed to keep military
           | interest, thank you.
        
       | kingsuper20 wrote:
       | I'm surprised it wasn't Amazon buying them. There's bound to be
       | more than a few people that steal from their warehouses.
        
       | ManuelKiessling wrote:
       | And a fricking messenger app sold for $21.8 billion.
       | Unbelievable.
        
         | jokoon wrote:
         | Being able to do sentiment analysis on all the consumers of the
         | world is a goldmine for revenue. Marketing doesn't have a good
         | reputation, but information is power.
        
         | analognoise wrote:
         | Real stuff isn't highly valued.
        
         | macspoofing wrote:
         | To be fair, nobody was under any illusion that this valuation
         | had anything to do with the technology WhatsApp developed. Any
         | half competent team could recreate WhatsApp. The price was for
         | 1 billion active users. That's a little harder to get.
        
         | didip wrote:
         | When you look at how scared Facebook was of WhatsApp and
         | combined that with FB market cap... $22 billion makes so much
         | sense.
        
       | mrweasel wrote:
       | Normally tech companies tend to be overpriced, but $880M for 80%
       | of Boston Dynamics (total value of $1.1 billion), doesn't that
       | seem a little low?
       | 
       | Other tech companies can seemingly lose millions, as long as
       | there's an advertising or data-mining angle to the product.
       | Because Boston Dynamics aim to actually create physical products
       | they then get valued lower?
        
         | unabridged wrote:
         | This is an extremely low valuation for how famous BD is. They
         | could have gone public and sold 10-20% of their stock for $1B.
        
         | qeternity wrote:
         | It's the same issue faced by other "moonshot" R&D enterprises
         | like DeepMind. They burn tremendous amounts of cash, and as
         | other comments have noted, the path to profit is unlikely to be
         | a direct path through their core competency, whether that be
         | general purpose robotics or AGI.
         | 
         | DeepMind's greatest commercial achievement seems to have been
         | around optimizing energy usage in Google's datacenters, which
         | as a standalone product would have a relatively small
         | addressable market. The progress that BD has made is likely
         | similar: immediately valuable to a small number of players,
         | even if the long term winds up being something far more grand.
        
         | balfirevic wrote:
         | > Normally tech companies tend to be overpriced
         | 
         | According to what criteria?
        
           | jsight wrote:
           | Based on profits at the date of valuation. Its a useless way
           | to value companies, but that's basically always what this
           | comment means.
        
         | TulliusCicero wrote:
         | The research they've done is undeniably awesome, but valuations
         | aren't based on awesomeness, they're based on ability to make
         | money. So far, Boston Dynamics hasn't done much there. There's
         | potential to make a lot of money, but that's far off.
        
         | saalweachter wrote:
         | Does this come down to the unit costs?
         | 
         | Your typical tech unicorn can at least tell a story of tens or
         | hundreds of millions of potential customers (either paying or
         | eyeball-monetized) with a unit cost of pennies per customers.
         | 
         | Boston Dynamics story is still "each robot costs tens or
         | hundreds of thousands of dollars" and "almost no one has a use
         | for one".
         | 
         | Honestly I'm not sure there's a story for a profitable market
         | for humanoid robots until your robots are sophisticated enough
         | to build themselves.
        
         | eric4smith wrote:
         | I doubt they want BD for the products they're making. They want
         | BD for all the hundreds of tiny little innovations they're
         | making.
         | 
         | For example, a motor that has more torque with low power
         | consumption.
         | 
         | A joint that can flex a certain way.
         | 
         | All those things are worth $100000000x more than a robotic Spot
         | when it comes to industrial applications.
        
       | yarg wrote:
       | Why leave the word "controlling" out of the title?
        
         | sammyaxe wrote:
         | I believe that word is in the title
        
           | yarg wrote:
           | It is now; it was left out of the submission title despite
           | being part of the article's.
        
         | elliekelly wrote:
         | The headline definitely downplays Hyundai's involvement:
         | 
         | > The deal will involve Hyundai and its affiliates, including
         | Hyundai Motor Co., Hyundai Mobis Co., and Hyundai Glovis Co.
         | 
         | > Hyundai Motor, Hyundai Mobis, Hyundai Glovis, and Hyundai
         | Motor Group Chairman Chung Euisun will have 30%, 20%, 10%, and
         | 20% share respectively.
         | 
         | It's been a while since I've had to think about consolidated
         | financial reporting for subsidiaries and -- if anyone happens
         | to know -- I'd be curious to understand how (or whether) these
         | ownership tranches will make it onto Hyundai Parent Co's
         | financial statements?
        
       | ufmace wrote:
       | Hyundai's interests are broad enough that I really wonder what
       | they intend to do with it. Are they just going to do factory
       | helper robots that are super-specialized and we'll never see? Or
       | will they actually commercially sell some version of these types
       | of robots?
        
       | MichaelMoser123 wrote:
       | i thought that boston dynamics were a former DOD contractor, did
       | this cause any problems with the authorization of the sale? (here
       | it says that they got a lot of initial DARPA funding
       | https://en.wikipedia.org/wiki/Boston_Dynamics )
        
         | numair wrote:
         | We just sold South Korea a bunch of actual weapons so I don't
         | think these could-be weapons are going to attract too much
         | controversy. And if you think there's some _actual_ weaponry
         | among the could-be weapons technology, well... Take a look
         | around the neighborhood. Maybe that's the point?
         | 
         | (I don't think this is true; I am of the belief that the hidden
         | secret within most companies, regardless of size or industry,
         | is that they're way more boring and way less sophisticated than
         | they would like to appear.)
        
           | hoseja wrote:
           | Sell a man a fish, he'll come back hungry tomorrow. Teach him
           | how to fish, you just lost a customer.
           | 
           | edit: Karl Marx came up with it first it seems haha. I swear
           | I didn't know!
        
             | wombatpm wrote:
             | I prefer the darker version. Give a man a fire and he'll be
             | warm for a night. Set a man on fire and he'll be warm for
             | the rest of his life.
        
               | davidkuhta wrote:
               | Tenet would beg to differ.
        
           | smhost wrote:
           | > Take a look around the neighborhood. Maybe that's the
           | point?
           | 
           | Probably not, since South Korea maintains pretty good
           | relations with its neighbors. South Korea (as well as the
           | rest of the world) doesn't see the U.S. anymore as a rational
           | partner, but as something to be managed with caution. North
           | Korea is unironically seen as a more predictable and reliable
           | enemy than the U.S. is seen as a reliable ally. Nobody is
           | happy about this, but that's the reality.
        
             | jgilias wrote:
             | Are you actually from South Korea to be able to comment on
             | what the South Korean perception on their neighborhood is?
             | Like, this is a no offense intended genuine question.
             | 
             | Because from an outside perspective the neighborhood really
             | looks challenging. China is growing stronger and throws
             | muscle around a lot with diplomatic rows ensuing even over
             | traditional ways of cabbage preparation. Relationships with
             | Japan are cordial at best due to WWII legacy. North Korea
             | seems to be a pretty big liability.
        
               | xpressvideoz wrote:
               | As a South Korean, I can share some perspective. There
               | has always been pro-American and anti-American atmosphere
               | in South Korea. Recently, the scale seems to be more and
               | more skewed towards the United States. We're definitely
               | not in favor of North Korea, and even regarding China,
               | more and more South Korean are seeing them as a threat
               | rather than a partner. We don't _love_ the US either, but
               | when faced to choose between the US and China, most
               | Korean would choose the US. I guess the GP was just salty
               | about the Trump administration.
        
               | smhost wrote:
               | The South Korean position locally is actually not that
               | challenging in a particular sense, despite typical media
               | exaggerations. It's almost straightforward. SK has strong
               | economic and cultural ties to its neighbors that can be
               | accessed to stabilize relations if needed. North Korea is
               | not really a liability in itself. KJU has been acting
               | consistently towards opening up the North Korean economy
               | on NK's own terms, which would benefit both nations
               | tremendously. Those kinds of attempts are being
               | stonewalled by Biden, and that's causing the U.S. to lose
               | favor even among some pro-Americanists. As for the kimchi
               | problem, I don't know what to say. That's the same kind
               | of bickering as when France tells people to stop labeling
               | things as champagne. I understand that those things can
               | get brutal, but it's nothing world-changing. Beneath the
               | headlines, South Korea has been quietly strengthening
               | relations with China, because South Korea is not
               | suicidal. The groundwork has to be laid today for the
               | eventuality of a Chinese economy that is at least twice
               | the strength of the U.S. economy. But even without China,
               | at some point people are going to have to learn to live
               | in a way that isn't dictated by the fears of the American
               | empire.
        
               | jgilias wrote:
               | I don't believe the least bit that there are more than a
               | few people in South Korea who believe that they are
               | living 'in a way dictated by fears of the American
               | empire'.
               | 
               | I say this as someone living in a region where the 'local
               | neighborhood' also has its challenges in the form of a
               | wannabe world power local authoritarian hegemon.
               | Alliances, including the one with the US, are seen as
               | paramount for security and long-term sovereignty. If that
               | also fulfills some US strategic interests, so be it. The
               | alternative is dreadful.
        
               | smhost wrote:
               | I think you're misunderstanding. Learning not to live
               | according to the fears of the American Empire doesn't
               | mean learning to be opposed to the American people or to
               | break alliances. If anything, it should our job to
               | lecture Americans on what is and is not appropriate fears
               | to have.
        
               | darkerside wrote:
               | South Korea has been a stalwart US ally for many years.
               | While you're right that relations with NK and China have
               | softened, and calling them challenging is probably an
               | overestimation, the US is far from a bit player in the
               | region.
               | 
               | Like any democracy, you have continents of folks that
               | want to cozy up to China, and others that trust the
               | history of their relationships with the US and Japan.
        
               | smhost wrote:
               | South Korea has been less of an ally than it has been a
               | client state of the U.S. "Ally" implies some degree of
               | autonomy for both parties. South Korea has never really
               | had the opportunity to act for itself, and when it has,
               | it has received cold and rather tonedeaf responses from
               | the U.S. (just look at the recent visit by Moon to the
               | U.S.). That's not at all to say that the SK-US relation
               | is inauthentic; there's definitely something genuine
               | there. But that authenticity doesn't to seem recognized
               | by the current administration. Biden seems to want to
               | keep South Korea as the client state that it has always
               | been despite (what seems to me) to be reasonable demands
               | of sovereignty.
        
           | MichaelMoser123 wrote:
           | don't know. here it says that Spot was tested by the french
           | army in combat roles
           | https://www.theverge.com/2021/4/7/22371590/boston-
           | dynamics-s...
        
       | crsv wrote:
       | I think it's quite the loss for the US to allow a foreign company
       | to gain controlling interest in such a cutting edge firm. Some of
       | what they've built I'd have to imagine could be of very real
       | national interest as it relates to any of the military
       | applications.
        
       | justicezyx wrote:
       | Good move.
       | 
       | I think the next step of mobility is a mobile robot. The cars of
       | the future should be a central hub for move people between
       | places, but able to do a lot more through physical manipulation,
       | instead of becoming a enlarged mobile information terminal.
       | 
       | Thus, developing cars as robots are going to be more useful in
       | that future.
       | 
       | I personally will invest time in building products that are
       | mobility robots, not cars with giant screen.
        
         | powerapple wrote:
         | A car can take you to work and instead of waiting in carpark,
         | it can help you do stuff, that would be awesome XD
        
           | mrweasel wrote:
           | I just want my car to drive itself to service checks, when
           | I'm at work. Save all that trouble of having to gamble that
           | they have a car you can use, or there's a bus route that
           | won't take you an hour back and forth.
           | 
           | Self-driving done right could save me from having two cars.
           | It could take me to work, drive back home, pickup the wife,
           | drive her to work. Go back and pick me up in the afternoon,
           | drop me of at home and the drive back to get the wife.
        
             | prawn wrote:
             | This made me think of something I hadn't considered before
             | - whether we'll first see automated driving, but only when
             | the vehicle is empty. e.g., you drive yourself somewhere,
             | then the vehicle moves on to another job. If the vehicle is
             | privately owned, it would park or drive home for your wife
             | to use. If part of a fleet, it would just drive on to the
             | next request.
             | 
             | Cars in that mode could be constrained to a less dangerous
             | speed to limit damage in an accident. I don't want to drive
             | to work at 20km/h, but once I'm out of the car, I don't
             | really care how slowly it goes.
             | 
             | Of course, it wouldn't necessarily work to combine too
             | broadly differing speeds on the same roads. But it would
             | remove a bit of the "I'm not putting on my VR goggles to do
             | work and trusting this car to drive to the office" fear.
        
               | itsoktocry wrote:
               | > _I don 't want to drive to work at 20km/h, but once I'm
               | out of the car, I don't really care how slowly it goes._
               | 
               | The other people on the road trying to get to work
               | probably do.
        
               | slavik81 wrote:
               | A basic form of low-speed self-driving would be automated
               | valet parking. Drop people off or pick them up at the
               | entrance, then go park far away.
               | 
               | If there was a common communication standard, the
               | vehicles could also park much more tightly than is done
               | in a normal parking lot. You don't need to keep empty
               | space behind each car when you can coordinate the parked
               | cars to move and clear a path. My guess is that you could
               | park almost twice as many cars in the same space.
               | 
               | The combination of reducing parking lot size and freeing
               | people from walking to/from the lot would open up many
               | interesting options for increasing density and
               | walkability in commercial areas.
        
             | jahller wrote:
             | this would be the best usage for what we consider cars
             | imaginable. also would negate the need to personally own a
             | car. just order one from a fleet of autonomous cars if you
             | are in need of mobility.
        
               | itsoktocry wrote:
               | > _just order one from a fleet of autonomous cars if you
               | are in need of mobility._
               | 
               | I find it confusing that one reason the tech crowd
               | cheered on Uber's success was because taxis were often
               | filthy and poorly maintained. But autonomous car fleets
               | won't be?
        
               | mrweasel wrote:
               | Ideally yes, but there's a lot of hurdles to overcome.
               | For many it would work just fine, but for other there's
               | going to be minor details that makes it work less well.
               | 
               | Firstly we need to spread out peoples work day. We can't
               | all be at the office a 8:00, and go home at 16:00. it
               | wouldn't make economical sense in have a fleet large
               | enough to handle peak hours, but have the cars do nothing
               | most of the day.
               | 
               | There's also details like: I would like a car to pick me
               | up at 15:45, and drive me to the kindergarten, and that
               | car MUST have a seat for a three year old (but not a seat
               | of brand X, Y, or Z, because they're to small). Or I need
               | a car with a trailer, or a truck, because I'm moving
               | 500kg of dirt to the recycling station.
               | 
               | Most people shop around for cars and pick very specific
               | cars that fit their needs. So renting for a fleet of cars
               | also need a rather large variety and flexibility in
               | allowed usage.
               | 
               | I believe that many would still want to buy their own
               | cars, even if it's self-driving, to ensure it's available
               | when they need it, and that it fulfil their specific
               | needs.
               | 
               | If we didn't have all these specific needs, most of us
               | could just take the bus, which in turn would make it
               | feasible to have all the bus routes people would need.
        
               | gilbertbw wrote:
               | > it wouldn't make economical sense in have a fleet large
               | enough to handle peak hours, but have the cars do nothing
               | most of the day.
               | 
               | But that's the current state of the world.
               | 
               | Even if you have enough cars to meet peak demand you will
               | have an efficiency saving (at least where I live you see
               | a lot of cars in driveways during rush hour traffic).
               | 
               | That said I agree that for a lot of people their car is
               | an extension of their home, they'll keep the golf clubs
               | and a coat in the boot etc. But for the 80% case of just
               | carrying a rucksack to and from work there is a massive
               | efficiency improvement to be had.
        
               | mrweasel wrote:
               | > But that's the current state of the world.
               | 
               | True, but the difference is who's carrying the financial
               | risk of the buying the car. Right now it's the individual
               | consumers, who are mostly forced to do so, because better
               | alternatives are not available.
               | 
               | Leasing companies would never buy a fleet of cars that
               | would sit mostly unused. Their cars needs to be on the
               | road most of the time.
               | 
               | This puts us back in Uber vs. taxis. Uber works because
               | (depending on area and regulation) there cannot be
               | sufficient taxis to handle peak demands, that wouldn't be
               | financially sound for the taxi companies. Uber tries to
               | fix this, by taping into idle cars in the driveways. A
               | company that maintains a fleet of cars that you can just
               | order on-demand, would always have to few cars for rush
               | hour.
        
               | 88 wrote:
               | The market solves these problems so we don't have to.
               | 
               | It is extremely common for markets to face bursts in
               | demand at peak times, and yet somehow we always find a
               | sustainable equilibrium.
        
               | maxerickson wrote:
               | The fleet would be sized to whatever was profitable. If
               | people were willing to pay more at rush hour, there would
               | be some capacity to capture that demand.
               | 
               | Thinking through what it costs me to own a car, I'm going
               | to carefully do the math if they price my trip into the
               | office at more than about $5 (it's a short drive). That's
               | probably the bigger problem.
        
               | jahller wrote:
               | > True, but the difference is who's carrying the
               | financial risk of the buying the car. Right now it's the
               | individual consumers, who are mostly forced to do so,
               | because better alternatives are not available.
               | 
               | car-sharing already exists on a large scale in German
               | capitals. you can park and pickup cars from e.g. Sixt or
               | Share Now everywhere within a marked area. the business
               | model for owning and maintaining a big fleet is already
               | there.
        
               | 88 wrote:
               | > it wouldn't make economical sense in have a fleet large
               | enough to handle peak hours
               | 
               | Supply and demand with dynamic pricing will sort that
               | out.
               | 
               | Consider also that autonomous vehicles could make much
               | more efficient use of existing road capacity.
               | 
               | > If we didn't have all these specific needs, most of us
               | could just take the bus
               | 
               | Buses do not take you directly to your preferred
               | location, without stopping, with your own private space,
               | etc.
        
             | [deleted]
        
           | blackoil wrote:
           | Autobots, collect the grocery and parcel.
        
         | thingsgoup wrote:
         | Riding a robot horse could be fun! Such a thing would likely
         | have an easier time navigating complicated terrain than any
         | vehicle with wheels.
        
           | whatshisface wrote:
           | Almost as fun as riding a real horse and only several
           | thousand times more expensive!
        
           | justicezyx wrote:
           | 4 pods shelled tank in ghost in the shell! The most
           | impressive design I know of from any entertainment piece.
        
       | Shadonototro wrote:
       | korea taking over USA, hahaha that's funny, America really is
       | dying
        
       | eric4smith wrote:
       | These are one of the few times I can say that I don't care if
       | Boston Dynamics are making money as yet.
       | 
       | Boston Dynamics are one of the few real serious players in the
       | robotics space worldwide doing deep R&D.
       | 
       | Hyundai are basically paying for the BD Labs research. And they
       | are well positioned to reap the products and techniques from the
       | lab with their own manufacturing and engineering prowess and
       | experience over the next decade.
       | 
       | And it won't be walking dogs.
       | 
       | It will be things like a little flexi-joint in a car that you buy
       | without knowing (or caring) it's in there. Or some industrial
       | machine that Hyundai builds that gives them a 5% competitive edge
       | in the manufacturing of it that 99.9999% of us never hear about.
       | 
       | But for that it's worth it.
       | 
       | Very happy to see people put good money into this Lab.
        
         | nine_k wrote:
         | The key competence of BD is locomotion on legs. There are
         | plenty of other companies that make stationary industrial
         | robots, and a few who make wheeled robots.
         | 
         | But there are still a number of areas where wheeled robots are
         | at a disadvantage: inspection of complex industrial
         | installations (like complex pipework and other hard-to-reach
         | areas), firefighting and rescue operations, well, even delivery
         | in places with steps and stairways.
         | 
         | Korea is more technophilic than USA, and Hyundai is well-
         | connected. They may find a more ready market for such products.
        
           | MisterBastahrd wrote:
           | There are plenty of patents along the way to get to
           | locomotion on legs that have uses that don't necessarily need
           | to be applied in that manner. Hyundai gets all of those too.
        
         | hkmurakami wrote:
         | I imagine Hyundai Motors has loose informal connections and
         | regular collaborative efforts with other former Hyundai Group
         | companies, including Hyundai Heavy Industries and Hyundai
         | Robotics, so hopefully there'll be some smooth expertise
         | sharing there.
         | 
         | https://en.wikipedia.org/wiki/Hyundai_Group
         | 
         | https://en.wikipedia.org/wiki/Hyundai_Heavy_Industries
         | 
         | https://www.hyundai-robotics.com/english/
        
           | NoImmatureAdHom wrote:
           | Hyundai is one of South Korea's market-dominating cartels,
           | the chaebol: https://en.wikipedia.org/wiki/Chaebol
           | 
           | "regular collaborative efforts" is an understatement.
        
         | jazzyjackson wrote:
         | Automatic plugs for electric cars would be a welcome update,
         | like getting your gas pumped in Jersey
        
         | nitin_flanker wrote:
         | Hyundai has it's own Robotic labs too. They have plenty of
         | reasons to invest in Boston Dynamics, apart from just car
         | parts.
         | 
         | In addition, Robots manufacturing cars or car parts, improving
         | their own robotic products could be another reason behind this.
        
         | kevin_thibedeau wrote:
         | Great for Hyundai. Not such a good ROI for the taxpayers who
         | kept BD afloat with decades of DARPA funding.
        
           | thebiss wrote:
           | I don't know where to even look for this, but it would be
           | interesting to see if the DARPA investment bought them a
           | perpetual, irrevocable license to technologies they funded.
        
           | chickenmonkey wrote:
           | I think their investment in DARPA has a positive externality
           | for society. If we account for this externality, perhaps
           | taxpayers enjoy a positive ROI?
        
           | fny wrote:
           | I think people are missing the point of this comment. The US
           | invested heavily in BD, and now BD is being incorporated into
           | a South Korean company rather than a US company.
           | 
           | I presume this is mostly because US manufacturing industry is
           | relatively dead so capex for potential automation gains don't
           | make sense for US firms.
        
             | echelon wrote:
             | > US manufacturing industry is relatively dead
             | 
             | Here's where we need to be spending our tax money. We
             | should be buying overseas firms and onshoring manufacture.
        
               | nine_k wrote:
               | The legal landscape in the U.S. may be harder to
               | navigate, labor laws more strict, and salaries
               | necessarily higher. This all makes it hard for U.S.
               | manufacturing to compete on production of commodities.
               | 
               | Like many of the EU industries, viable U.S. industries
               | tends to produce and export unique things with relatively
               | small physical volume: complex chips, complex chemical
               | compounds (like medicines), precision mechanics, high-
               | performance agricultural equipment, aircraft, spacecraft,
               | etc. Of course the U.S. does produce higher-volume
               | things, too, from cars to foods to fuels, but these are
               | more for domestic consumption, and often face competition
               | from imported goods even domestically.
        
               | swagasaurus-rex wrote:
               | Not to mention land prices mean salaries need to be
               | higher for the workers to afford rent/mortgages,
               | facilities more expensive, higher property taxes, even
               | ancillary purchases are more expensive.
        
               | echelon wrote:
               | What if we opened up immigration and built factories in
               | middle America?
               | 
               | Provide path to citizenship and education opportunities
               | for children of immigrants, but host all manufacturing
               | domestically at rates comparable to overseas facilities.
               | Beat them on opportunity and subsidize workplace safety
               | and vacation.
               | 
               | Provide tax incentives or transferable/sellable credits.
               | We could even federally purchase the land and provide no-
               | cost ground lease.
               | 
               | Dollars to dollars, this would make way more sense than
               | extending Amtrak. It'd also stop population decline and
               | create a next generation of American consumer.
        
             | derriz wrote:
             | The perception that US manufacturing is dead is mostly just
             | perception, if you look at the actual numbers.
             | 
             | Before the big dip caused by covid, the value of US
             | manufacturing output had never been higher. [1]
             | 
             | Even in inflation adjusted/real value terms, US
             | manufacturing output is 50% higher today than it was 30
             | years ago.
             | 
             | My guess is that the perception is cause by a few factors:
             | 
             | - fewer people are employed in manufacturing than were in
             | the past because of improved manufacturing
             | technology/productivity
             | 
             | - other sectors of the US economy have grown at a faster
             | rate than manufacturing (tech for example) which means
             | manufacturing represents a smaller share of a bigger pie
             | 
             | - the US is no longer number 1 in the world as China
             | surpassed the US about 10 years ago. But the US still
             | manufactures more than Germany, Japan and South Korea
             | combined, for example.
             | 
             | [1] https://www.nam.org/state-manufacturing-
             | data/2020-united-sta...
        
           | tooltalk wrote:
           | It's just too bad that the DARPA couldn't flip it like
           | Softbank did in just a few years.
        
             | echelon wrote:
             | They first sold it to a US company without a vision
             | (Google).
             | 
             | If Google can't figure out how to get a messaging app
             | right, there's no way they can make sense of this purchase.
        
           | JohnWhigham wrote:
           | Not everything DARPA does is going to be a hit. Don't forget
           | they're responsible for virtually all of the funding that
           | helped build the myriad technologies that comprise the
           | Internet.
        
             | bongoman37 wrote:
             | DARPA funding is actually supposed to fail at a reasonably
             | high rate. If they succeed a lot it means they are not
             | taking big enough bets.
        
           | gmadsen wrote:
           | DARPA basically started the self driving industry
        
           | judgardner wrote:
           | Assess the DARPA funding as a portfolio.
        
             | ErikVandeWater wrote:
             | Is that even possible? I imagine lots of, if not the
             | majority of what DARPA does is classified.
        
             | noir_lord wrote:
             | Agreed - one of the benefits of DARPA is they fund long-
             | shots which once proven viable (or not) are then
             | commercially developed.
             | 
             | This is a good outcome, the money wasn't 'wasted' since it
             | spurred development in a particular area of interest to
             | DARPA - advanced robotics.
        
             | blamazon wrote:
             | "DARPA Awards Moderna Therapeutics a Grant for up to $25
             | Million to Develop Messenger RNA Therapeutics" (2013)
             | 
             | https://investors.modernatx.com/news-releases/news-
             | release-d...
        
               | vibrio wrote:
               | I believe DARPA is a national treasure, and has driven a
               | ton of otherwise neglected innovation, but let's not
               | overstate their contribution to Moderna. For exsmple,
               | AstraZeneca did a deal with Moderna including a $240MM
               | upfront to another $180MM for potential milestones six
               | months before the DARPA money. That is all on top of a
               | pile of venture money and other corporate deals over
               | those few years. The value of the DARPA $25MM wasn't the
               | money per se, it was the incentive for Moderna to keep a
               | toe in infectious disease, which was a hobby for them
               | (and the industry) at best before COVID. I believe the
               | platform would have been established with or without the
               | DARPA money.
               | 
               | https://investors.modernatx.com/news-releases/news-
               | release-d...
        
               | whymauri wrote:
               | >For exsmple, AstraZeneca did a deal with Moderna
               | including a $240MM upfront to another $180MM for
               | potential milestones six months before the DARPA money.
               | 
               | This is called "biobucks" in the industry. There's an
               | incentive to close big deals for management and business
               | types in biotech, so they love to craft these large
               | headlines to drop it on their resume and grift at another
               | big pharma.
               | 
               | I'd be surprised if they ever received the $180MM,
               | although $240MM upfront is really impressive.
        
               | vibrio wrote:
               | I think "grift" is a bit cynical. I agree the 'biobucks'
               | concept largely exits, but it also good deal-making. A
               | huge upfront is 100% risk on the buyer. Paying out
               | incrementally for accomplishments is common and good
               | business sense risk-sharing and should happen in almost
               | any industry.
               | 
               | The larger point is that Moderna was flush with cash for
               | years before COVID, and the DARPA money wasn't that
               | 'crazy' of an investment, or essential to Moderna's
               | progress.
        
               | JohnJamesRambo wrote:
               | Oh this one deeply paid off. Great find.
        
         | nly wrote:
         | Robots that build cars seem most likely? Not sure how many
         | staff your average car factory has, but due to sheer product
         | complexity it's still more than other industries like food
         | manufacturing.
         | 
         | Maybe we'll see vast car factories, churning out thousands of
         | cars per day, with only a half dozen staff in years to come?
        
           | weego wrote:
           | Robots already build cars, and supply of new cars is often
           | out-stripped by demand. It's not really new ground.
           | 
           | The limitations in car production are always the component
           | supply chain, not the actual manufacture.
        
             | Tade0 wrote:
             | Robots indeed build cars, but not from start to finish.
             | 
             | Especially customisation and snapping delicate plastic trim
             | pieces in place is still done by hand.
        
               | batmansmk wrote:
               | Humans spend 15h to 60h of labour to build a car. After,
               | humans worked on individual parts, shipping, loading etc.
               | 
               | My rule of thumb is that there is about 10% of
               | manufacture cost that are direct or indirect cost
               | connected to payroll.
               | 
               | If I may add another axis of reflexion that I consider
               | fundamental for modern engineers to consider, food for
               | machines for producing a car (44% natural gas when
               | smithing things) is about 15 to 25% of the energy cost to
               | use the car in its lifetime, according to the EU. Or
               | about 2,400 euro of a 8L/100km car.
               | 
               | So in a world where energy gets more expensive,
               | automation needs to definitely evolve, but not solely to
               | be faster or replace more humans.
               | 
               | https://www.mdpi.com/1996-1073/13/9/2396/pdf
        
               | glitchc wrote:
               | Even 60h seems low here. Do you only mean assembly?
               | Tacking on parts manufacturing, sub-component assembly,
               | and software is likely to increase that estimate by a
               | factor of 2 to 5.
        
             | nly wrote:
             | Google image search "car factory" and it's super obviously
             | it's quite labour intensive. I'm not sure why an investment
             | in robots has to be "new ground".
        
               | deelowe wrote:
               | You're using the wrong terms. Add "advanced
               | manufacturing" to the query to get some idea of the
               | current state of things. I toured a new automotive plant
               | over 10 years ago and up until the final configuration
               | stage, the only manual labor was cabling and quality
               | control. This included sheet metal unloading and delivery
               | (from rail), stamping of the chassis, welding, paint,
               | installation of doors, hood, suspension, etc, powertrain
               | installation, and many others. From my estimate, 2/3 of
               | the factory was very close to being "lights out." The
               | entire welding and paint process was fully automated and
               | required a line stop to enter the area.
        
               | mikeyouse wrote:
               | The Google Image search isn't reflective of an actual car
               | factory.. There are of course hundreds of workers there
               | but final assembly facilities produce something like 1
               | car/minute. They're heavily reliant on robots - most of
               | the parts move around the floor on autonomous transports,
               | the stamping is all robotic, all of the frame welding is
               | robotic, paint is of course robotic.
               | 
               | GM is of course tied in with the UAW, so they're going to
               | be as favorable to labor as possible in their promo
               | videos, but take a look at this video of one of their
               | production facilities, this is reflective of the amount
               | of manual input into modern automotive production:
               | 
               | https://www.youtube.com/watch?v=-Ow7gmZTIpo
        
               | jrwoodruff wrote:
               | I've toured this plant. They don't show it in this video,
               | but in the stamping and body areas of the plant, they
               | don't even have the lights on at task levels - it's a
               | dusk-level lighting until a human enters the space. This
               | plant was built circa 2006, and is pretty amazing. Bring
               | steel coils into one side of the factory, get a fully
               | assembled car from the other side.
        
               | newsclues wrote:
               | You are right, modern car manufacturers still use humans
               | in assembly lines.
               | 
               | But to see how much robots actually do nowadays, compare
               | that to auto assembly from decades ago when robots were
               | new, or further back when they did not exist
        
               | jrwoodruff wrote:
               | Yup! And really, the highly, highly automated processes
               | in car manufacturing are in the stamping, body
               | construction and painting phases. Almost no humans
               | involved in those three major phases. Final Assembly is
               | the most labor intensive, because it involves lots of
               | fiddly little parts going into hard to reach places. Even
               | then, it's usually robot-assisted tasks, so one person is
               | installing a seat, where it would usually take two, or
               | something like that.
        
           | LinuxBender wrote:
           | Maybe. Another possible variant on that idea could be micro-
           | factories [1] that address delivery constraints and allow a
           | factory to be located anywhere there is a small warehouse.
           | 
           | [1] - https://www.youtube.com/watch?v=Z_Qyor9Yc-s
        
             | eloff wrote:
             | Seems that would be a supply chain nightmare, plus it would
             | multiply capital costs. I doubt it's worth it.
        
           | RegW wrote:
           | In a factory setting I would have thought existing robots
           | would suffice.
           | 
           | Looking at the wider group, I would think there's lots of
           | roles for robotics in construction. Delivery of heavy items
           | across uneven terrain or up stairs - may be something like a
           | robotic hod carrier.
        
             | jcims wrote:
             | They are pretty great at welding and painting, they not as
             | good at attaching bumpers or trunk lids, and terrible at
             | running wire looms through doors or installing headliners.
             | 
             | Also from my last visit at an assembly plant ~5 years ago,
             | most plants are still on large conveyors vs. driving
             | individual vehicles around the plant, and materials
             | handling is still in the 90's with little stripe-following
             | tugs slowly moving about the place.
        
           | eric4smith wrote:
           | That's a good assumption to make. They for sure see 800M+
           | value in it.
        
             | [deleted]
        
       | JohnWhigham wrote:
       | What's the difference between a "controlling stake" and just
       | owning the company?
        
         | dharmab wrote:
         | A controlling stake doesn't have to own the majority of the
         | company, just the majority of voting shares. It gives you
         | meaningful influence over the board and executives but does not
         | entitle you to all (or even a majority of) of any profit.
        
         | tomhoward wrote:
         | A controlling stake means you own enough shares to have full
         | voting control (i.e., you control the board votes, can appoint
         | the executives and set the company direction) without having to
         | pay for 100% of the shares.
         | 
         | There are a few reasons to only acquire a controlling stake
         | rather than 100% of the shares; you might want to preserve
         | capital for other uses, or leave some shares to be traded on
         | public markets so the stock still has a market valuation.
        
           | Ensorceled wrote:
           | Or to leave key executives and tech leaders with some shares.
        
       | orliesaurus wrote:
       | BD was once under Google/Alphabet's control - then they let them
       | go, what does that mean? Was their robotics efforts not useful to
       | Google's own research branch? Did acquihired the talent and then
       | resold what was left to SoftBank? I have no clue...then SoftBank
       | sold it again.. What I know is surely BD must have gone through a
       | lot of turmoil (acquisitions) for such a small company (300ish
       | employees?) since its inception!
        
       | Baeocystin wrote:
       | Honestly, of all the mega-corps that could have been the ones for
       | this round of BD bailout, this isn't a bad choice at all. Hyundai
       | already has a strong background in robotics, and hopefully
       | they'll be able to help Boston Dynamics to finally capitalize on
       | their excellent work.
       | 
       | I do wish controlling interest had managed to stay stateside,
       | but, well, it is what it is.
        
       | sergiotapia wrote:
       | Boston Dynamics is the one company on this planet that inspires
       | me and makes me believe in a wonderful future that we have yet to
       | even glimpse. I hope they keep doing what they're doing and
       | elevate our species to new heights. God bless them.
        
       | nr2x wrote:
       | Seems like they'd be a good fit for Disney, making theme park
       | attractions.
        
         | TameAntelope wrote:
         | I'd be a little sad if this technology only ended up being
         | useful as a toy, but then again the biggest disruptors are at
         | one point thought of as toys, so maybe that's about where we
         | are in the process?
        
           | nr2x wrote:
           | If they monetized their YouTube channel I'm guessing it would
           | be their biggest revenue source, as far as I'm concerned they
           | are an entertainment company already.
        
       | jeffrallen wrote:
       | I, for one, salute my new dog-shaped robot overlords.
        
       | jmcgough wrote:
       | They've gone from Google -> Softbank -> Hyundai in a few years.
       | 
       | Does anyone know where their revenue is coming from currently?
       | For all the flashy videos they put out, you so rarely see them
       | that I'm not sure if they're just doing well on the B2B side
       | (warehouse automation? military contracts?), or if they've been
       | in the red for the last decade.
        
         | 88840-8855 wrote:
         | They bleed money and are not revenue positive yet. And all
         | those re-acquisitions indicate that none of their parent
         | company could provide a nurturing environment to enable the
         | company to make profit.
         | 
         | My two cents. If not military use or a very expensive niche
         | use, e.g. for emergency services, then those things will have a
         | pretty hard time to enter the mass-consumer market.
         | 
         | What will probably happen is that a Chinese company will be
         | able to produce a 80% version of those machines for less than
         | 1k. This is when those things will become interesting to
         | consumers for whatever purpose those things can be used.
         | 
         | As long as the SPOT robot costs over 70k, nobody will even
         | consider buying it.
        
           | helsinkiandrew wrote:
           | Unitree's Go1 is currently $2.7K. I commented on the HN
           | thread below that if walking robots have any use/future - A
           | company like Unitree could become the DJI of the industry and
           | make Boston Dynamics even more of a niche player than it
           | already is.
           | 
           | https://news.ycombinator.com/item?id=27569631
        
             | accurrent wrote:
             | As someone who has worked with both Unitree and Boston
             | Dynamics I can tell you there is a marked difference in the
             | ability for Boston dynamic's ability to walk vs Unitree's.
             | The ANYMal is closer to Boston Dynamic's capabilities but
             | also at a similar price point. That being said what Unitree
             | is lacking is good software so theres a chance that they
             | may be able to incrementally catch up while maintaining a
             | relatively low pricepoint. I don't think we're gonna see a
             | DJI moment any time soon in this space purely because the
             | other algorithms around this area are still in their
             | infancy. Furthermore, motor prices don't seem to have
             | fallen all that much making innovation in this space much
             | harder than with drones.
        
               | jcims wrote:
               | You can see this in the Unitree videos, nearly everything
               | is on a flat plane and while it was a video from 2019 it
               | seemed to struggle climbing stairs a bit.
        
               | echelon wrote:
               | But they'll sell at a higher volume and be able to
               | reinvest in R&D. Boston Dynamics needed constant
               | injection of capital.
        
               | sudosysgen wrote:
               | Forgive me if I'm wrong but I though motors aren't the
               | main cost, rather the rest of the actuator?
               | 
               | Also Unitree is going to make so much money selling these
               | as well as get so much mass producing experience they'll
               | probably be able to figure out the algorithms. Methinks
               | the code is easier to figure out than reliable and cheap
               | hardware.
        
               | jcims wrote:
               | The motor usually makes up about a third, the motor
               | controller another third and the planetary gears and
               | enclosure the final third.
        
           | sdflhasjd wrote:
           | Where does 70k even go?
        
             | ionwake wrote:
             | 1- Unitrees robot looks identical - though it looks like it
             | lacks Lidar?
             | 
             | 2- Is the Unitree robot so similar because of talent
             | poaching or just a coincidence?
             | 
             | 3-How could a person invest in a company like unitree?
             | 
             | Thanks
        
               | helsinkiandrew wrote:
               | The more expensive versions of the Go1 have Lidar.
               | 
               | Robot dogs are going to look like dogs - a body with
               | legs. According to the about page, the CEO has been
               | developing quadruped robots since 2013 (his masters
               | thesis). https://www.unitree.com/aboutus
               | 
               | Looks like they've take venture capital money:
               | https://www.crunchbase.com/organization/unitree-robotics
        
             | TaylorAlexander wrote:
             | The high cost components of a robot like this are:
             | Actuators, motor drivers, batteries, compute, sensors, and
             | mechanical components.
             | 
             | I did not reference SPOTs specs but it must be full of low
             | volume custom parts (expensive). They are honestly probably
             | selling them at little to no profit as $70k is about how
             | much a low volume custom research robot might cost in
             | parts. But I could see them getting SPOT down to $20k in
             | parts, but then you still need to do assembly which is
             | going to be very hands on with technicians doing assembly
             | and test engineers checking components. And one could
             | imagine they'd like it if they could manage some profit.
             | IDK it all adds up robots are super expensive.
        
         | drdeadringer wrote:
         | > They've gone from Google -> Softbank -> Hyundai in a few
         | years.
         | 
         | I was a contractor at Google when the Google//Boston Dynamics
         | was happening, I now work//live in Silicon Valley, I grew up in
         | MA, so I've been mildly following the story.
         | 
         | Is this sort of pinball "normal"?
        
           | tyingq wrote:
           | Softbank said they were purposefully selling things off to do
           | stock buybacks and cut debt earlier this year. They
           | supposedly paid $100M for BD, so selling it for $880M would
           | be a nice way to do that. I think the ping-pong is just
           | coincidental timing of both Google and Softbank wanting to
           | sell off R&D type things.
        
         | throwaway879 wrote:
         | This and the first few replies to it feel like they're coming
         | from bean counters, not engineers. Who reads HN? I mean anyone
         | can, but who's the core audience. I'm confused. Shouldn't the
         | top voted thread be about the tech and the engineering behind
         | it, and debating whether it's worth funding or not based on
         | that, not based on things that are mostly the concern of
         | business people. Is it that most engineers today have MBAs or
         | are MBA wannabes? or well roundedness? But this focus on
         | business metrics is not well roundedness, for an engineer, IMO.
        
         | jahller wrote:
         | i'm not sure if they operate in the classical sense of a
         | company with a budget. i see them more as a research facility
         | with huge interest from the military and law enforcement
         | complex.
        
         | ackbar03 wrote:
         | I asked something like this last time as well. I don't think
         | they have any meaningful revenue except for their dog bot
         | "spot" which they only launched very recently. They basically
         | just survive on funding, kind of like some university research
         | group
        
         | jmcgough wrote:
         | Looks like they've just been bleeding money for years:
         | https://www.bloomberg.com/news/articles/2020-11-17/boston-dy...
        
       | luxuryballs wrote:
       | Let's go robot that steps out of the trunk and pumps my gas for
       | me!
        
       | ConcernedCoder wrote:
       | I can imagine those dancing robots being used to replace workers
       | in an auto assembly plant.
        
       | pcurve wrote:
       | Probably one of the better companies to acquire controlling stake
       | in BD because several of their own companies would directly
       | benefit from robotics.
        
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