Reaching Deep Into Your Pocket BMW Spends Hundreds of Millions on Start-Ups in the Field of AI

Source: dpa 1 min Reading Time

As has now been leaked, the car manufacturer BMW is planning to invest many millions of dollars in start-ups that focus on artificial intelligence via its subsidiary "BMW i Ventures" ...

Nothing ventured, nothing gained, as the old saying goes. And BMW also puts this into practice. For example, the Munich-based car manufacturer is now investing hundreds of millions of dollars to support start-ups that are familiar with AI ...(Image: BMW)
Nothing ventured, nothing gained, as the old saying goes. And BMW also puts this into practice. For example, the Munich-based car manufacturer is now investing hundreds of millions of dollars to support start-ups that are familiar with AI ...
(Image: BMW)

The investment firm's new and third venture capital fund will invest around 300 million dollars (currently 256 million euros) in young companies in North America and Europe. The aim is to give BMW access to artificial intelligence (AI) technology. With "BMW i Ventures", the company is investing specifically in technology that will shape the future of the automotive industry as a whole. At least that's what BMW CEO Oliver Zipse said. Incidentally, these investment funds are borne entirely by the Group. The so-called venture investments are considered a key element of the Munich-based (Germany) car manufacturer's innovation strategy. Last but not least, Zipse believes that AI has more than clearly demonstrated its optimization potential for the entire value chain.

That's How BMW's Venture Investments Work:

In a roundtable discussion with journalists, BMW manager Marcus Behrendt from "BMW i Ventures" said that the venture capitalist is one of the first backers of early-stage start-ups. As an early-stage investor, BMW usually invests in a single start-up as an initial investment, spending up to 10 million dollars. In the case of artificial intelligence start-ups, however, investment decisions have to be made quickly, which in the current environment means days and a few weeks. Incidentally, this happens independently of the BMW Group. For further information: BMW started supporting young companies in 2011 with "BMW i Ventures". The car manufacturer is also the sole shareholder with locations in Munich and Silicon Valley. So far, BMW emphasizes, it has invested in 90 newcomers and has exited more than 30 of them by selling shares or going public. The total investment volume of the venture capitalist currently amounts to around 1.1 billion dollars.

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