New Toyota Venture Capital Unit Targets Tech Startups

Toyota Motor Corp. is launching a new Silicon Valley-based venture capital subsidiary, Toyota AI Ventures, to support startup companies that specialize in artificial intelligence, robotics, autonomous vehicles and big data/cloud technologies.

The new unit will be bankrolled by the carmaker’s Toyota Research Institute (TRI) arm, which is providing $100 million of funding for the program. Jim Adler, TRI’s vice president of data and business development, is managing director of Toyota AI Ventures.

In addition to investing in existing startups and entrepreneurs, AI Ventures will take a so-called “call and response” approach. The strategy involves identifying key research challenges, then helping launch new companies with plans to address the issues.

Three previous TRI investments—in Nauto, SLAMcore and Intuition Robotics—will be rolled into AI Ventures. The new subsidiary also will provide mentoring services and on-site support at TRI’s Silicon Valley headquarters. Last year TRI invested $12 million in Nauto, which is developing artificial intelligence-based sensors to collect and manage driver and road data for fleet companies.

Britain’s SLAMcore develops advanced algorithms to help technology platforms such as autonomous cars, drones and augmented/virtual reality systems build a map of their surroundings and simultaneously position themselves within it. TRI participated in SLAMcore’s seed financing in March.

In May, TRI contributed an unspecified amount in Intuition Robotics’ $14 million Series A financing. The Israel-based startup is developing a robot companion to help older adults.