Robo.ai to acquire Neurovia in $100M all-stock deal to pivot toward physical AI infrastructure

Robo.ai (NASDAQ:AIIO) announced a transformative $100 million all-stock agreement to acquire 100% of Neurovia AI, a move intended to accelerate the company’s transition from digital software to the backbone of physical artificial intelligence.

The Dubai-based technology firm is betting that Neurovia’s specialized data processing and compression technology will be the "primary inlet" for the massive amounts of video data required by the next generation of autonomous machines.

Under the terms of the agreement, Robo.ai will issue 149,097,957 Class B ordinary shares to the sellers.

The transaction is structured to ensure long-term stability and alignment, featuring a strict eight-year lock-up period.

This includes a full lock-up for the first three years, followed by a five-year staggered vesting schedule, effectively preventing immediate selling pressure and signaling a multi-year commitment from Neurovia’s leadership.

The strategic rationale centers on the shift from "digital AI"—primarily text and image-based models—to "physical AI," where devices like robotaxis, drones, and humanoid robots must process, transmit, and analyze real-world video in real-time.

By integrating Neurovia’s compression technology, Robo.ai plans to upgrade its existing business lines into a global AI video data infrastructure platform.