Sumitomo Rubber to acquire US AI partner Viaduct

Kobe, Japan – Sumitomo Rubber Industries (SRI) has signed an agreement to acquire US-based AI solutions startup Viaduct for US$104 million (€89 million), the Japanese group announced 27 Aug.

The two firms have been collaborating since 2023 on proof-of-concept projects, combining SRI’s tire sensing technology “sensing core” with Viaduct’s AI systems.

The acquisition of the Silicon Valley startup comes ahead of the launch of SRI’s predictive maintenance services for fleet vehicles later this year.

The group plans to roll out the service in North America in October, with further expansion planned for Europe and Japan.

According to SRI, the system will notify users of optimal parts replacement timing, helping to prevent breakdowns and streamline maintenance.

SRI also intends to extend the service into areas such as “parts ordering and work instructions”, creating synergies with its tire business.

Founded in 2018, Viaduct has developed proprietary AI technology to analyse large volumes of data from vehicles and factories.

This enables early anomaly detection and root-cause identification, according to SRI.

Viaduct is also seeking to expand its applications beyond automotive into other industries.

SRI, meanwhile, said it aims to develop ‘sensing core’ as its fourth core business, alongside tires, sports and industrial products.

The group targets operating profit of over JPY10 billion (€58 million) from the unit by 2030, focusing on autonomous driving and fleet management.

“This is one of the key strategies to accelerate the achievement of the sensing core business concept outlined in our long-term corporate strategy RISE 2035,” said SRI president and CEO Satoru Yamamoto.

Through closer collaboration, he added, “we aim to create innovative services that go beyond mobility.”

For Viaduct, the deal offers “scale and reach,” said CEO David Hallac.