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acquisitions

The Air Force Wants to Give You Its Credit Card

March 6, 2019 by Aaron Babcock

Will Roper, assistant secretary of the Air Force for acquisition, technology and logistics, is something like Q for the Defense Department. He formerly ran the Strategic Capabilities Office, a secretive military skunkworks designed to figure out how to fight future wars. While there, he helped design swarms of tiny unmanned drones; he helped create Project Maven; and he tried to partner the Defense Department with the videogame industry. Now his new job may be even harder: Making the Air Force acquisitions process efficient.

He’s going to be leading a pitch day for the Air Force this week in New York City, and he spoke with WIRED about that and also where he sees the future of military technology going—from AI to hypersonic weapons to space.

Jahi Chikwendiu/The Washington Post/Getty Images

(This interview has been condensed and edited.)

Nicholas Thompson: You're launching a new system very soon to help get startups very quickly signed up to Air Force contracts. Tell me how it works and why you are doing it.

Will Roper: We've got to be able to work with the entire industry base, and even our fastest agreements still take a couple of months to get nailed down. That’s too long for a startup that needs cash flow quickly. And so we really worked hard to hack our system and we’ve gotten down to where we can do credit-card-based awards on a single day. That's what we're going to try to demonstrate in New York. We're obviously not investing in startups—we’re going to put them on projects where they're going to deliver technology to the Air Force. But we want it to feel like they're pitching to a venture capitalist.

NT: And so, specifically, it means that I will come to you with an idea, you’ll vet the idea, and if you agree, you will pay me right there on a Pentagon credit card?

WR: We’ll pay you right then and there. If you have a PayPal account, then you can work with the Air Force.

NT: What is the credit limit on the Air Force's credit card?

WR: We’re going to start by doing awards at $158,000 per transaction. We did a round of practice trials prior to going up to New York City. So we had a hundred companies come and give us ideas, and we were able to award 104 contracts in 40 hours using our credit card swipes. And they’re triaged into phases: Phase one are small awards, phase two are bigger awards, phase three even bigger. And rather than do it the normal government way, which is to do a traditional contract in a single-time, upfront cash award, we're going to do them in installment payments over time. The resounding feedback we've gotten from the small companies is that it's so much better for them to be able to tell investors and stakeholders that they're going to have consistent cash flow over time.

NT: Yep. What is an example of one of the ideas that you agreed to fund?

WR: We've had companies that have proposed AI solutions to help us with predictive maintenance. We want to predict maintenance issues before they occur. Well, that's an AI problem. We’ve gone operational on two systems: the C-5, which is a large cargo plane that moves stuff all around the world. It has over 105 algorithms that are operational today already predicting things we would have never found until after the fact. And the B-1 bomber: It has 40 algorithms that are operating. We’re finding issues with landing gear and wheels long before they would be inspected. So this kind of digital oracle is something we're excited about. We're hoping that at Pitch Day in New York we're going to get a lot more companies that are looking at the maintenance side of the house, not just development.

NT: So, for example, there might be a company that has expertise in how wheels fray, it would analyze the data on takeoffs and landings, and it would predict when you need to replace part of the wheel in the C-5?

WR: They don't even have to be an expert in our systems. If they're an expert in data analytics and machine learning, they really just need access to our data so that they can tell us what patterns it sees in the data.

NT: And predictive maintenance is, if I recall, the first place where the Pentagon started using AI, is that correct?

WR: Actually the first place we started was back in Project Maven. That was a project that I started at SCO, which proposed to try to get people out of the business of watching full motion video and use AI to recognize targets. And we started working with a variety of stakeholders in the intelligence community. Google was working with us and, as you know, that ended up going in a different direction.

NT: The reason why predictive maintenance is an early AI application is because there are steady data streams, because it's an area of huge investment, and because it's relatively low risk—at least for a Pentagon operation—in that it doesn't involve combat?

WR: Yeah, I think you have all the nails on the head. There's really no downside to doing it. The data is available. There's a mission imperative. It's not sensitive, we're not talking about classified data, and there's no operational risk. And when there's no downside, even the sclerotic bureaucracy of the Defense Department can manage to fast-track those things.

Senior Airman Philip Bryant/U.S. Air Force

NT: The reason Project Maven was an early use is because AI is so good at image recognition?

WR: Exactly. Computer vision came along quickly because of commercial applications. It was obvious that things that were inherent on smartphones, recognizing faces and pictures, could be applied to our intelligence, surveillance, and reconnaissance mission. We wanted to get people out of the brute-force task of finding targets, and move them into the business of recognizing targets of interest that were identified by AI. We weren’t trying to shift people out of the loop; we just wanted them doing higher-order tasks.

NT: Was Google's announcement that it would depart when its contract ended something that was a major blow or something that was quickly passed over?

WR: I would say it was a surprise. But there are many companies working in computer vision. In acquisition, we are used to having to switch between vendors based on a variety of issues, so it was really no big deal in terms of what people are trained to do. But I think there's a broader issue, which is just wanting to make sure that we have as many open doors as possible to work with us.

NT: Let’s talk theoretically about Maven and something you said a minute ago, which is that Maven took humans out of the business of just scanning endless video and moved them to a higher-level task. But you can imagine AI doing that higher-level task, and the one above that, and even identifying targets or carrying out a mission. Where do you stop using AI and say that humans have to be involved?

WR: Our policy right now is that lethal decisions are always retained by people. And I don't see that policy changing anytime soon. I think the only thing that would raise the discussion is if there were just simply no way to compete without thinking about other options. But I don't really see a future where humans are going to be out of the loop. We're just going to be increasingly out of the loop on brute-force tasks.

You could imagine right now that AI does a pretty good job identifying houses and cars of a different type and that, in the future, you might go from recognizing your car to the type of car, and then the type of car to a specific car. But I don't think this nation is going to want to take lethal decisions out of the hands of people. You can't ask AI why it made a choice. It made the choice because that's what its training data said, and that's not a sufficient answer for most people. We want to be able to judge the judgment of someone making a decision, and AI doesn't give us that ability.

NT: Let me speculate for a second more, though. We're not that far off from a time when AI is definitively better at image recognition than a human. And I can totally see the argument why you’d always want a human to make an offensive lethal decision. But what if you flip it around? What if it's a missile defense system? Would you still want a human in the loop to make a decision to shoot down an incoming missile even if we knew that AI would be better and quicker at recognizing it?

WR: I think those things will fall into a different category. I don’t see it as being an issue if you have to hand a decision over to a weapons system when there’s an incoming ballistic missile or cruise missile. But I think when we're making a decision about human targets, there is going to be a desire to hold the deciding entity accountable for what they've done. And in order to even think about having AI move up into that level of judgment, we're going to need a different kind of AI because we'll need to understand not just what it recommends but why it recommends it. Step one for the Air Force is, we've got to learn how to use the AI that exists today smartly. And until we start pushing it into programs and learning what's easy and hard, we're keeping it in the world of speculation. I've joked with the Air Force that you can't spell Air Force without ‘AI.’

NT: Explainability is becoming a pretty hot debate in AI, and there are a bunch of people, very smart people, who say, you know, explainability is an unfair standard. If you ask a human why they made a decision, they can give you a story, but it might not really be why they made a decision. And so if we are demanding explainability on our AI algorithms, A) we’ll be much slower and B) we might be setting them to a standard beyond even what we set humans.

WR: No, I agree. I’m glad the researchers are working on explainability, but there's no guarantee it will happen. So maybe rather than have explainable AI or auditable AI, maybe it's just AI that can do research and fill in its training set when it makes mistakes—an AI that continues to learn and research. We’ve got to get something down a level from just simply giving us the best pattern match, and I'm glad that our research labs are working on it. I'm glad that commercial industry is working on it.

NT: And how much do you worry that having burdens of explainability, making sure that humans are always in the loop, will slow down United States military advancement? And that, if we're setting all these rules and standards and requirements, and China or Russia is not, they will press ahead in this fast-moving technology?

WR: I worry every day, Nick. Our long-term competitiveness is my No. 1 worry, and it's the pace of technology change that drives that worry. We're not only in a competition with other nations, we're in a period where technology changes at a rate it never has before. And the development system that we currently use in the Pentagon is simply one of the Cold War. It moves in decade-long moves. And we now need to be able to make changes on a yearly basis. So I worry about anything that gives us the excuse to wait another year before we take this seriously.

DMITRY KOSTYUKOV/Getty Images

The reason why—the whole focus I brought into this job is simply trying to accelerate the process at which we buy and build things, which is a huge undertaking. But I've been pleased so far with how the Air Force has been able to accelerate. Step one: Let's get airman out of brute-force tasks and get our highly trained, highly capable airmen into higher-order thinking. That ought to be a sufficient first step to get us in the game. To your point, it's the first step in a long journey, and we can't get tired soon.

NT: And what is the most impressive AI you've seen from Russia and China? Are there specific advances that you've seen that make you sleep even less well?

WR: Well, I can't comment on the specifics of any country. I will say that China's announcement of its megaprojects should give us pause. If another nation sees the importance of AI for its economic competitiveness, its military competitiveness, we have to at least match that seriousness, if not eclipse it.

NT: I mean, it seems like the whole way the Pentagon works, with specific, precise commands being followed in specific, precise ways, is pretty complicated for AI.

WR: It is. I mean, the system that we've inherited out of the Cold War is accustomed to being able to forecast the threat, identify its strengths and weaknesses, and develop the countermeasures to them. That's how the Cold War was won. And as much as people knock the system, it did win the Cold War. So we can say it was sufficient for the challenge of its time.

But now, let's look at this century, let's look at this decade. Would you believe it if I told you what the 2030 threat to the Air Force is? Would you believe me? You probably wouldn't. Because technology is changing so rapidly the threat could go in a variety of ways. Technologies can mature we don't even know today. AI is a capability that evolves the more you use it. So the longer that we wait to get it fielded, the longer it's going to take us to start evolving it to be better, which is eroding our competitiveness against an adversary that has the forethought to do that. AI is a wonderful capability to make you more reactive without having to build a completely new system to get a new capability. We've got to get into the game now and make opponents react to what we're doing, so that we always had that first-mover advantage. It’s the only way I see to be able to stay ahead in a future that's not predictable.

NT: So the challenge for you, and for the department more generally, is to not necessarily be more accurate in predicting precise threats but to make the whole Defense Department, and the Air Force specifically, more adaptive. That way, whatever the threat evolves into, we can respond better.

WR: Yes. Maybe in the future AI is going to be the most significant technology for militaries, maybe it's quantum systems, maybe it's synthetic biology. It could be any of those things. There's strong evidence that all of those are going to be game-changers in the future. But can you predict which one is going to be the game-changer first? Well, if you can, then come work for the Air Force! We need clairvoyants in our camps. But if we can't, then we've got to be more adaptive than any military. Whatever the technology is that comes out of the commercial world, we've got to be able to take it, apply it, and get it into the hands of people who can use it. It's one reason why we are working on things like Pitch Day.

NT: So let's talk a little bit about the threats that could potentially face the Air Force in 2030. For example, will there be self-flying fighter jets?

WR: Oh, I hope so. That’s something I have dearly hoped to be able to push and start while I’m in this job. I think we're going to have to explore autonomy everywhere. And I don't think that the future Air Force is likely to be an Air Force of only unmanned systems, again because I think autonomous systems are going to be able to do certain things well, and people are going to be able to do different things well, and teams of them together will do things well.

NT: So do we have plans underway to develop the kind of planes that would be piloted by an AI system where you don't need a seat?

WR: So we've got a group working for us and they're working on a program called Skyborg—cute name—that is exploring that concept. What do smaller, unmanned tactical air vehicles look like? How should they be built? How should we integrate them with the F-35, for instance, which is able to network with other systems. I think it'd be pretty cool to explore an F-35 that is able to control small or tactical vehicles that are around it or ahead of it.

George Frey/Getty Images

NT: And so the idea is that either you can have a fleet of these or you can have them attached to the current F-35 and you control them through sensors inside the F-35, or something else?

WR: Absolutely that's what we're thinking. The F-35 is really more than a fighter—and we don't talk about this very much, but I wish we did—in that it has wonderful sensing, computing, and networking capabilities. It's able to see things other things can't see, but it can share that data and it's also able to connect with other systems through a protocol that's called Open Missions Systems, OMS, and UAV Control Interface, UCI.

NT: Fascinating. Where are we on hypersonic weapons? Both in developing them and in being able to defend against them.

WR: We've come a long way. So I think that was week one in the job for me. I had been pushing the Air Force when I was at SCO to use mature technology from OSD [Office of the Secretary of Defense] hypersonic programs to accelerate their programs. Don't build it again, use what's already worked. And now that I'm Air Force acquisition, those programs report to me. So it's been great, the team is doing a great job with the acceleration.

The one that I mentioned is called Hacksaw. It’s a Hypersonic Conventional Strike Weapon and it is on the path to being the department's first operational hypersonic weapon. We are 22 months away from full operational flight test, with early operational capability one year after. From the time you test there are other things you have to do—certifying, training—before we did declare it as a capability. But 22 months is wicked fast. So, knock on wood, this nation will have a hypersonic weapon in about two years.

NT: And what about the ability to defend against hypersonic weapons?

WR: So that's the initiative that's being taken on by Missile Defense Agency. Hypersonic weapons are challenging because they fly low. So they're under—if you just look at curvature of the Earth, the hypersonic weapon that's boosting gliding stays much lower than a ballistic missile, so it's harder for radars that are constrained by curvature of the Earth to pick them up. There are concepts to try to track hypersonic weapons from space that are being explored. They're very much in the S&T phase, but they ought to be explored. We should never quit trying to solve challenges. But those are probably a step further than programs I'm going to start while I'm in this job.

NT: And what about using AI for war planning, for laying out how to actually engage in combat?

WR: That’s a great idea, I've never thought of that to be honest. Makes a lot of sense. You could imagine doing tons and tons of permutations. One of our programs is the Minuteman replacement program, it’s called Ground Based Strategic Deterrent. It's an $80 billion procurement, so it’s huge. It places all of the ICBMs we have. It has these wonderful digital engineering tools that allow our team to explore millions of designs. It has some some analytic capability that allows optimization. I wouldn't call it full AI, but the hopes are there that if we took the next step, that it would be.

And I can imagine having something very similar in a war plan. The ICBM system’s extremely complicated, so if you make a design change, having the computer tell you not just what the performance is going to be like but what the cost is going to be—it's just eye-watering and in the future I want every program to have tools like that. They're worth their weight in gold, but I think it does make sense for our war planners to have that. So great idea! I'm going to go see if I can find the right place to plant it in the Air Force.

NT: Let's talk about the Space Force for a second. Tell me what you are looking for in the Space Force. If somebody is coming to Pitch Day and they're fascinated by space, what are some of the areas where you'll be building?

WR: Well, space is critically important and we can't treat space as if it’s an off-limits domain. Too much of the military support comes from space: We do communications from there; we do GPS; we do sensing from there. So the idea that those targets are off limits is simply not feasible or wise. A lot of our economy flows through space. I imagine most people don't think about the fact that they can't live a day of their life without reliance on space, whether it's cheap GPS for navigating, or weather. It comes from Air Force satellites in space communications. So, so much of our lives are tied to space. We're all people of space whether we want to think it or not, so I'm glad that we're having the discussion that we need to be ready for conflict to go there.

As the acquisition exec for the Air Force, we have to start building space systems that are ready to deal with space being a hostile environment. And that's the work we're doing now. We're focusing on making sure systems are resilient, that they can survive and fight through threats that will try to take them out.

NT: Last question. What else do you want to see on Pitch Day in two weeks?

WR: I hope we'll see ideas across a wide variety of missions. I hope we'll have a lot of software companies that can come help us for both software development and also improvement of how we do software. I hope that we're going to see additive manufacturing companies. There is a huge potential for companies that are working in additive manufacturing to work with the Air Force. And the great thing about working with us is we don't have any IP. When we push a new technique in partnership with a company, they get to see it. They get to use it. And I certainly hope we'll get more predictive maintenance ideas. We don't have enough of it yet. I would like to see what predictive maintenance across a whole fleet of aircraft does.

But the other thing I'm hoping for, Nick, to be honest, is that I find some things I didn't know I needed. I hope you can use these as a place or a magnet for good ideas that we're not smart enough to request. So I hope to be able to tell you afterwards that I was surprised and pleased. I'm sure I will be.

NT: All right, great. Well, good luck and thank you so much for taking the time to talk me through all of this. This was really fun.

WR: Hey, thanks, Nick. Anytime.


Read more: https://www.wired.com/story/will-roper-air-force-interview/

Filed Under: acquisitions Tagged With: Air Force, Artificial intelligence, Defense, Military, security

Transportation Weekly: Polestar CEO speaks, Tesla terminology, and a tribute

March 4, 2019 by Aaron Babcock

Welcome back to Transportation Weekly; I’m your host Kirsten Korosec, senior transportation reporter at TechCrunch . This is the fourth edition of our newsletter, a weekly jaunt into the wonderful world of transportation and how we (and our packages) move.

This week we chat with Polestar CEO Thomas Ingenlath, dig into Lyft’s S-1, take note of an emerging trend in AV development, and check out an experiment with paving. Oh, and how could we forget Tesla.

Never heard of TechCrunch’s Transportation Weekly? Catch up here, here and here. As I’ve written before, consider this a soft launch. Follow me on Twitter @kirstenkorosec to ensure you see it each week. (An email subscription is coming).


ONM …

There are OEMs in the automotive world. And here, (wait for it) there are ONMs — original news manufacturers. (Cymbal clash!) This is where investigative reporting, enterprise pieces and analysis on transportation lives.

This week, we’re featuring excerpts taken from a one-on-one interview with Polestar CEO Thomas Ingenlath.

On February 27, Volvo’s standalone electric performance brand Polestar introduced its first all-electric vehicle, a five-door fastback called the Polestar 2. The EV, which has a 78 kWh battery pack and can travel 275 miles (estimated EPA guidance) on a single charge, will be manufactured at a new factory in Chengdu, China. Other notable specs: The infotainment system will be powered by Android OS, Polestar is offering subscriptions to the vehicle, and production starts in 2020.

yellow-jacket-polestar

Here is what Ingenlath had to say to me about …

EV charging infrastructure

To be very unpolitical, I think it would be totally stupid if we were to aim to develop electric charging infrastructure on our own or for our brand specifically. If you join the electric market today, of course, you would see partnerships; that’s sensible thing to do. Car companies together are making a big effort in getting out a network of necessary charging stations along the highway. 

That’s what we’re doing; we’re teaming up and have the contracts being designed and soon signed.

On the company’s approach to automation 

The terminology is important for us. We very clearly put that into a different picture, we’re not talking about, and we clearly do not ever want to label it, an “autopilot.” The focus of this system is a very safe distance control, which brakes for you and accelerates for you, and of course, the lane keeping. This is not about developing an autopilot system, it is about giving your safety. And that’s where we don’t want to provoke people thinking that they have full rollout autopilot system there. But it is a system that helps you being safe and protected on the road.

I also reached out to Transportation Weekly readers and asked what they wanted to know and then sent some of those questions to Ingenlath.

TW Reader: How did it feel taking one of your personal styling elements – the C shaped rear lamps – from your previous brand over to Polestar?
Ingenlath: It’s an evolutionary process. Polestar naturally builds on its “mothers” DNA and as a new branch develops its own personality. Thor’s hammer, the rear light signature -—with each new model launch (Volvo and Polestar) those elements diverge into a brand specific species.
TW Reader: How much do you still get to do what you love, which is design?
Ingenlath: Being creative is still my main job, now applied on a broader scope — trying to lead a company with a creative and  brand building mindset. Still, I love the Fridays when I meet up with Robin and Max to review the models, sketches and new data. We really enjoy driving the design of both brands to new adventures.


Dig In

Tesla is finally going to offer customers a $35,000 Model 3. How the automaker is able to sell this electric vehicle at the long-awaited $35,000 price point is a big piece of that story — and one that some overlooked. In short, the company is blowing up its sales model and moving to an online only strategy. Tesla stores will close or be converted to “information centers” and retail employees will be laid off.

But this is not what we’re going to talk about today. Tesla has also brought back its so-called “full self-driving” feature, which was removed as an option on its website last year. Now it’s back. Owners can opt for Autopilot, which has automatic steering on highways and traffic-aware cruise control, or FSD.

FSD capability includes several features such as Navigate on Autopilot that is supposed to guide a car from a highway on-ramp to off-ramp, including navigating interchanges and making lane changes. FSD also includes Advanced Summon, Auto Lane Change, and Autopark. Later this year, the system will recognize and respond to traffic lights in more complex urban environments, Tesla says.

All of these features require the driver to be engaged (or ready to take over), yet it’s called “full self-driving.” Now Tesla has two controversially named automation features. (The other is Autopilot). As Andrew Hawkins at The Verge noted in his coverage, “experts are beginning to realize that the way we discuss, and how companies market, autonomy is significant.”

Which begs the obvious question, and one that I asked Musk during a conference call on Thursday. “Isn’t it a problem that you’re calling this full self-driving capability when you’re still going to require the driver to take control or be paying attention?” (I also wanted to ask a followup on his response, but the moderator moved onto the next reporter).

His response:

“We are very clear when you buy the car what is meant by full self driving. It means it’s feature complete, but feature complete requiring supervision.

As we get more — we really need billions of miles, if not maybe 10 billion sort of miles or kilometers on that order collectively from the fleet — then in our opinion probably at that point supervision is not required, but that will still be up to regulators to agree.

So we’re just very clear.  There’s really three steps: there’s being feature complete of full self driving that requires supervision, feature complete but not requiring supervision, and feature complete not requiring supervision and regulators agree.

In other Tesla news, the National Transportation Safety Board is investigating a crash, that at first glance seems to be similar to the fatal crash that killed Tesla owner Joshua Brown.

In cooperation with the Palm Beach sheriff’s office, the NTSB is sending a team of three to conduct a safety investigation of the commercial motor vehicle and Tesla crash in Delray Beach, FL.

— NTSB_Newsroom (@NTSB_Newsroom) March 2, 2019


A little bird …

We hear a lot. But we’re not selfish. Let’s share.

blinky-cat-bird

It’s no secret that Pittsburgh is one of the hubs of autonomous vehicle development in the world. But what’s not so widely known — except for a group of government and company insiders — is that Mayor William Peduto is on the verge of issuing an executive order that will give more visibility into testing there. 

The city’s department of mobility and infrastructure is the central coordinator of this new executive order that aims to help guide testing and policy development there. The department is going to develop guidelines for AV testing, we’re told. And it appears that information on testing will be released to the public at least once a year.

Got a tip or overheard something in the world of transportation? Email me or send a direct message to @kirstenkorosec.


Deal of the week

Daimler and BMW are supposed to be competitors. And they are, except with mapping (both part of the HERE consortium), mobility services (car sharing, ride-sharing), and now the development of highly automated driving systems. The deal is notable because it illustrates a larger trend that has emerged as the AV industry hunkers down into the “trough of disillusionment.” And that’s consolidation. If 2016, was the year of splashy acquisitions, then 2019 is shaping up to be chockfull of alliances and failures (of some startups).

Also interesting to note, and one that will make some AV safety experts cringe, both companies are working on Level 3 driving automation, a designation by the SAE that means conditional driving automation in which multiple high levels of automation are available in certain conditions, but a human driver must be ready to take over. This level of automation is the most controversial because of the so-called “hand off” problem in which a human driver is expected to take control of the wheel in time.

Speaking of partnerships, another deal that got our attention this week involved New York-based mapping and data analytics startup Carmera and Toyota Research Institute-Advanced Development. TRI-AD is an autonomous drive unit started by Toyota with Denso and Aisin. TRI-AD’s mission is to take the research being done over at the Toyota Research Institute and turn its into a product.

The two companies are going to test a concept that will use cameras in Toyota test vehicles to collect data from downtown Tokyo and use it to create high definition maps for urban and surface roads.

TRI-AD considers this the first step towards its open software platform concept known as Automated Mapping Platform that will be used to support the scalability of highly automated driving, by combining data gathered from vehicles of participating companies to generate HD maps. AMP is new and has possible widespread implications at Toyota. And TRI-AD is full of A-listers, including CEO James Kuffner, who came from the Google self-driving project and Nikos Michalakis, who built Netflix’s cloud platform, and Mandali Khalesi, who was at HERE.

Read more on Khalesi and the Toyota’s open source ambitions here.

Other deals:

  • India’s Ola spins out a dedicated EV business — and raised $56M
  • Volvo Cars has acquired a stake in Zūm, an on-demand ride sharing service for children


Snapshot

Snapshot this week is a bit untraditional. It’s literally a snapshot of myself and my grandmother, months before her 100th birthday. Her memorial service was held Saturday. She died at 101. She loved cars and fast ones, but not so much driving them. And every time I got a new press car, we’d hit the road and she’d encourage me to take the turns a bit faster.

She also loved road trips and in the 1920s, her father would drive the family on the mostly dirt roads from New Jersey to Vermont and even Canada. In her teens, she loved riding in the rumble seat, a feature found in a few vehicles at the time including the Ford Model A.

She was young at heart, until the very end. Next week, we’ll focus on the youngest drivers and one automotive startup that is targeting that demographic.


Tiny but mighty micromobility

Lyft’s S-1 lays out the risks associated with its micromobility business and its intent to continue relying on third parties to manufacture its bikes and scooters. Here’s a key nugget about adoption:

“While some major cities have widely adopted bike and scooter sharing, there can be no assurance that new markets we enter will accept, or existing markets will continue to accept, bike and scooter sharing, and even if they do, that we will be able to execute on our business strategy or that our related offerings will be successful in such markets. Even if we are able to successfully develop and implement our network of shared bikes and scooters, there may be heightened public skepticism of this nascent service offering.”

And another about seasonality:

“Our limited operating history makes it difficult for us to assess the exact nature or extent of the effects of seasonality on our network of shared bikes and scooters, however, we expect the demand for our bike and scooter rentals to decline over the winter season and increase during more temperate and dry seasons.”

Lyft, which bought bike-share company Motivate back in July, also released some data about its electric pedal-assist bikes this week, showing that the pedal assist bikes are, unsurprisingly, more popular than the traditional bikes. They also traveled longer distances and improved winter ridership numbers. Now, Lyft is gearing up to deploy 4,000 additional electric bikes to the Citi Bike system in New York City.

One more thing …

Google Maps has added a feature that lets users see Lime scooters, pedal bikes and e-bikes right from the transit tab in over 80 new cities around the world. Users can click the tab to find out if Lime vehicle is available, how long it’ll take to walk to the vehicle, an estimate of how much their ride could cost, along with total journey time and ETA.


Notable reads

If take the time to read anything this week (besides this newsletter), spend some time with Lyft’s S-1. The ride-hailing company’s prospectus mentions autonomous 109 times. In short, yeah, it’s something the company’s executives are thinking about and investing in.

Lyft says it has a two-pronged strategy to bring autonomous vehicles to market. The company encouraging developers of autonomous vehicle technology to use its open platform to get access to its network and enable their vehicles to fulfill rides on the Lyft platform. And Lyft is trying to build its own autonomous vehicle system at its confusingly named “Level 5 Engineering Center.”

  • The company’s primary investors are Rakuten with a 13 percent stake, GM with 7.8 percent, Fidelity with 7.7 percent, Andreessen Horowitz with 6.3 percent and Alphabet with 5.3 percent. GM and Alphabet have business units, GM Cruise and Waymo respectively, that are also developing AV technology.
  • Through Lyft’s partnership with AV systems developer and supplier Aptiv, people in Las Vegas have taken more than 35,000 rides in Aptiv autonomous vehicles with a safety driver since January 2018.
  • One of the “risks” the company lists is “a failure to detect a defect in our autonomous vehicles or our bikes or scooters”

Other quotable notables:

Check out the Pedestrian Traffic Fatalities by State report, a newly released report from Volvo Car USA and The Harris Poll called  The State of Electric Vehicles in America.


Testing and deployments

Again, deployments doesn’t always mean the latest autonomous vehicle pilot.

On Saturday, Sidewalk Labs hosted its Open Sidewalk event in Toronto. This is part of Sidewalk Toronto, a joint effort by Waterfront Toronto and Alphabet’s Sidewalk Labs to create a “mixed-use, complete community” on Toronto’s Eastern Waterfront

The idea of this event was to share ideas and prototypes for making outdoor public space the “social default year-round.” One such prototype “hexagonal paving” got our attention because of its use case for traffic control and pedestrian and bicyclist safety. (Pictured below)

These individual precast concrete slabs are movable and permeable, can light up and give off heat. The idea is that these hexagonal-shaped slabs and be used to clear snow and ice in trouble spots and light up to warn drivers and pedestrians of changes to the street use or to illuminate an area for public uses or even designate bike lanes and hazard zones. And because they’re permeable they can be used to absorb stormwater or melted snow and guide it to underground stormwater management systems.

Sidewalk Labs tell me that the pavers have “plug and play” holes, which allow things like bike racks, bollards, and sign posts to be inserted. Sidewalk Labs initially built these with wood, and the new prototype is the next iteration, featuring modules built from concrete.


On our radar

There is a lot of transportation-related activity this month.

The Geneva Motor Show: Press days are March 5 and March 6. Expect concept, prototype and production electric vehicles from Audi, Honda, Kia, Peugeot, Pininfarina, Polestar, Spanish car company Hispano Suiza, and Volkswagen.

SXSW in Austin: TechCrunch will be at SXSW this coming week. Here’s where I’ll be.

  • 2 p.m. to 6:30 p.m. March 9 at the Empire Garage for the Smart Mobility Summit, an annual event put on by Wards Intelligence and C3 Group. The Autonocast, the podcast I co-host with Alex Roy and Ed Niedermeyer, will also be on hand.
  • 9:30 a.m. to 10:30 a.m. March 12 at the JW Marriott. The Autonocast and founding general partner of Trucks VC, Reilly Brennan will hold a SXSW podcast panel on automated vehicle terminology and other stuff.
  • 3:30 p.m over at the Hilton Austin Downtown, I’ll be moderating a panel Re-inventing the Wheel: Own, Rent, Share, Subscribe. Sherrill Kaplan with Zipcar, Amber Quist, with Silvercar and Russell Lemmer with Dealerware will join me.
  • TechCrunch is also hosting a SXSW party from 1 pm to 4 pm Sunday, March 10, 615 Red River St., that will feature musical guest Elderbrook. RSVP here. 

Self Racing Cars

Finally, I’ve been in contact with Joshua Schachter who puts on the annual Self Racing Car event, which will be held March 23 and March 24 at Thunderhill Raceway near Willows, California.

There is still room for participants to test or demo their autonomous vehicles, drive train innovation, simulation, software, teleoperation, and sensors. Hobbyists are welcome. Sign up to participate or drop them a line at contact@selfracingcars.com.

Thanks for reading. There might be content you like or something you hate. Feel free to reach out to me at kirsten.korosec@techcrunch.com to share those thoughts, opinions or tips. 

Nos vemos la próxima vez.

Read more: https://techcrunch.com/2019/03/03/transportation-weekly-polestar-ceo-speaks-tesla-terminology-and-a-tribute/

Filed Under: acquisitions Tagged With: alex roy, android, Aptiv, Audi, automation, BMW, Canada, car, car sharing, Carmera, cars, China, e-bikes, Environmental Protection Agency, ford, google, honda, Joshua Schachter, Kia, Kirsten Korosec, Las Vegas, Lyft, mobility services, Netflix, New York, Peugeot, pininfarina, Polestar, rakuten, self-driving car, sidewalk labs, simulation, TechCrunch, Tesla Model S, Tokyo, Toronto, Toyota, toyota research institute, Transportation Weekly, volkswagen, volvo, waymo, Zipcar, Zum

Ceros raises $14M for its interactive content platform

March 3, 2019 by Aaron Babcock

Ceros allows marketers to create animated, interactive content — but don’t call it a content marketing company.

“We think content is just a dry, bland, over-leveraged, oversaturated space,” said founder and CEO Simon Berg. “The goal is not to hack the system, the goal is to make a great experience for your customers.”

That’s why he describes Ceros as a platform for creating experiences. The company is focused on powering beautiful, well-designed graphics and web pages, instead of blog posts or white papers that mostly exist to snare search traffic.

Ceros is announcing today that it has raised $14 million in Series C funding.

Ceros previously raised $19.5 million in funding, according to Crunchbase. The new round was led by Greenspring Associates, with participation from Grotech Ventures, CNF Investments, Sigma Prime Ventures, StarVest Partners, Greycroft and Silicon Valley Bank.

“Ceros is well known for empowering marketers to think creatively, but we have also come to know Ceros as a highly capital efficient business, which is a refreshing change in the burn-rate happy world of digital,” said Greenspring’s John Avirett, general partner, in a statement. “We’re confident that this investment will catalyze Ceros’ continued growth while enabling their team to opportunistically pursue acquisitions that enhance the core product and further penetration of key markets.”Ceros

For examples of the difference between Ceros “experiences” and run-of-the-mill content marketing, check out Ceros/Inspire, where some of the most-viewed projects include a comic book-style blockchain explainer from Ozy and a “friend versus pro” created to promote H&R Block.

“What we’ve continued to work on over the last seven years is to comply with laws of physics that are laws of internet, whilst giving as much creative freedom as possible,” Berg said. “We want to put the creative and the design piece first.”

The company says it’s now working with more than 400 customers, including well-known brands like United Airlines and Red Bull, as well as publishers including Condé Nast and Vice, plus sports teams like the Baltimore Ravens and Detroit Lions.

“Both in terms of the revenues that we’ve reached and the clients that we’ve worked with … you never really ‘arrive,’ but I feel like we’ve reached a critical milestone,” Berg said.

Interactive Content Can Save Content Marketing From The Dark Side

Read more: https://techcrunch.com/2019/02/28/ceros-series-c/

Filed Under: acquisitions Tagged With: Ceros, content marketing, Greenspring Associates, Grotech Ventures

Verified Expert Lawyer: Andrew Erskine

March 2, 2019 by Aaron Babcock

Andrew Erskine has developed his legal career along with the rise of the tech startup scene in Los Angeles. Today, as a partner at Orrick in its Santa Monica office, he works with companies large and small in the area and beyond.


His approach:

“The way that I practice and the philosophy I have is that clients aren’t really coming to me with legal problems. They’re coming with business problems and we need to solve them with that context. It’s almost never an answer of, ‘This is the law, now go do what it is that the law says exactly what you need to do.’ It’s more of, ‘This is the way that your business works and how I understand it, and these are the rules that are set out for you to follow and you need to think about how to follow them.’”

On LA’s startup scene:

“Andrew provides the same level of effort, expertise and professionalism when I was a pre-seed company with no capital as he did when we had raised $100 million.”Brian Thomas, Los Angeles, co-founder, Clutter

“The LA community has gotten to a point where it’s sophisticated and it’s significant. It’s one of the largest communities in the world, but we still need to be doing what we can to protect it and support it and help it grow further. It’s because we touch so many early-stage companies and, obviously, we have a lot of communication with early-stage investors and as you go up the chain, mid-late stage as well, a lot of it is also just trying to make sure that people are being connected the way that they need to be.

“I spend a lot of time just trying to put people in touch with each other, including a lot of people that are not my clients — I don’t do any work for them. They’re just people that I know in the community and we’ve become friends and I’m trying to make sure that what they’re trying to do is growing at the same rate.”

On early-stage problems:

“We’ve had acquisitions in the ten figures in recent years where people were coming out of the woodwork at the very last minute saying, ‘Hey, I own a piece of this company.’ And it was just something that founders never really thought to raise and then of course you’re dealing with the huge issue at the most critical point in the company’s history. So, things like that will happen.

“A lot of that is just trying to get that out of founders that you start working with, the stuff that you see in your experience can come back to really bite people, you just ask them day one, right away. ‘Hey, are there skeletons in the closet? Because if there are…’ ”

Below, you’ll find the rest of the founder reviews, the full interview and more details like their pricing and fee structures.

This article is part of our ongoing series covering the early-stage startup lawyers who founders love to work with, based on this survey (which we’re keeping open for more recommendations) and our own research. If you’re a founder trying to navigate the early-stage legal landmines, be sure to check out our growing set of in-depth articles, like this checklist of what you need to get done on the corporate side in your first years as a company.


The Interview

Eric Eldon: How did you get involved with tech companies and startups?

Andrew Erskine: I was a summer associate over here in LA and a bunch of outside groups would come talk about what they do. There was like one guy in the city working with startups and he came in and explained what he did and that was it. I heard him and I was like, ‘That’s what I want to do. Period.’ Just the way that he described what he was doing, the level of contact that he had with the people that are making decisions at these companies, the actual founders and lead investors, and the ability to not just be providing purely legal advice, but really trying to help these companies grow and build a vessel around them, giving them business advice, personal advice, whatever it is. It just sounded so much more fascinating than the idea of being one out of 100 on a deal and I just decided that I had to do it and it turned out really exactly how I hoped it would.

Eric Eldon: Can you just tell me more about how you see a lawyer playing a role in developing a tech startup ecosystem? 

Read more: https://techcrunch.com/2019/02/27/verified-expert-lawyer-andrew-erskine/

Filed Under: acquisitions

Australia to build ‘independently thinking’ drones

March 1, 2019 by Aaron Babcock

Hong Kong (CNN)Boeing Australia on Wednesday announced plans to make a jet drone with artificial intelligence that can act as a “loyal wingman” for manned jet fighters.

The 38-foot-long, single-engine drone with a range of more than 2,000 miles (3,200 kilometers) will be able to engage in electronic warfare as well as intelligence, reconnaissance and surveillance missions and swap quickly between those roles, according to Boeing.
Air Marshal Leo Davies, chief of the RAAF, hinted at how a drone with artificial intelligence would interact with human pilots in an interview with the Australian Strategic Policy Institute published Wednesday.
“We can program it to learn, but it learns linearly, it is not emotional and it is in many respects, in an air combat sense, quite inflexible,” Davies is quoted as saying.
“When we look at a pilot’s ability to assess the situation, that brings with it an amount of emotion and creativity that allows us to be agile.
“We need the flexibility and agility of the human meshed with the speed of a machine. When we put those together, we’ve got a quite amazing outcome,” Davies said.

Defense Export Strategy

Boeing said it would build the concept aircraft in Australia, with an eye to exporting to allied countries once production becomes possible.
“The Boeing Airpower Teaming System provides a transformational capability in terms of defense, and our customers — led by Australia — effectively become partners on the program with the ability to grow their own sovereign capabilities to support it, including a high-tech workforce,” Marc Allen, the president of Boeing International, said in the company’s statement.
Building the drones in Australia and selling them abroad would be in line with Canberra’s Defense Export Strategy, a 10-year-plan introduced a year ago and aimed at making Australia one of the world’s top 10 defense suppliers while building a manufacturing base at home.
“Exports will provide our defense industry with greater certainty of future investment and support high-end manufacturing jobs for Australians for generations to come,” the government said.
The high-tech drones would be the latest in a line of modern acquisitions for Australia’s air force.
The RAAF accepted its first F-35 Joint Strike Fighters last year and plans to have 72 of the stealth jets active by 2023. It also expects to have 15 P-8A Poseidon maritime patrol and anti-submarine aircraft in operation by 2023.
    Both those platforms could partner in missions with AI drones.
    The first flight of the drone is planned for 2020, Boeing said.

    Read more: https://www.cnn.com/2019/02/26/australia/australia-artificial-intelligence-boeing-drone/index.html

    Filed Under: acquisitions Tagged With: Australia, Australia to build 'independently thinking' drones - CNN, news

    THQ Nordic’s wild AMA over at Gamergate playhouse, 8chan, did not go well

    February 28, 2019 by Aaron Babcock

    THQ Nordic, the publisher behind such games as Darksiders 3, the upcoming Biomutant, and known for high-profile studio acquisitions like Deep Silver (Metro Exodus, Saints Row) hosted an AMA (Ask Me Anything) session(NSFW) on 8chan Tuesday.

    8chan is primarily known as a central hub of activity for Gamergate, the online harassment campaign that targets marginalized people in the video game and entertainment industry, including women, the LGBTQ community, people of color, and others. In the wake of the image board 4chan removing all Gamergate threads, Gamergate supporters flocked to 8chan, which led to Gamergate-related threads going from 100 per hour to nearly 4,000 per hour on the younger site. 8chan has also been identified as an active pedophile network.

    Its not immediately clear what THQ Nordic sought to achieve by hosting an AMA on 8chan. While many of the questions posed to at least three THQ Nordic representatives (identified as THQN_Philipp and THQN_Reinhard and THQN_Fabian) were relatively tame, some comments contained images of hentai, or anime pornography; real-world nudity; or questionable language. Perhaps even weirder, the apparent THQ Nordic representatives responded to a number of these comments.

    Where them big tiddie lolis at? one 8chan user wrote.

    8chan

    You already got them wed say, THQN_Philipp wrote back.

    8chan

    According to Philipp Brock, THQ Nordic’s Austria-based marketing director, it was all a misunderstanding. As he told the Daily Dot in a statement:

    I personally agreed to this AMA without doing my proper due diligence to understand the history and the controversy of the site. I do not condone child pornography, white supremacy, or racism in any shape or form. I am terribly sorry for the short-sightedness of my (!) decision, and promise to be far more vigorous in my assessment of these activities in the future. This was not about being edgy, this blew up and I very much regret to have done it in the first place.

    Elsewhere on the thread, a common theme emerged of encouraging THQ Nordic to ignore people whom 8chan deemed as social justice warriors.

    Please dont censor any games nor appeal to the [Social Justice] crowd, you guys are doing fine as is, one 8chan user wrote.

    Thanks! Well try to stay that way, THQN_Philipp wrote.

    One particularly noteworthy comment contained a picture of a medieval knight with the text cease your [discriminatory word for LGBT people].

    That could be from one of our upcoming games, THQN_Reinhard replied.

    Not long after beginning the AMA, THQ Nordic tweeted what appeared to be an explanation for their actions.

    The opportunity was here and we took it, we got apporached [sic] in a very friendly and polite manner and were assured, said person (shoutout to Mark) will take care of the nasty stuff. So, here we are, the tweet read.

    the opportunity was here and we took it, we got apporached in a very friendly and polite manner and were assured, said person (shoutout to Mark) will take care of the nasty stuff. so, here we are.

    — THQNordic (@THQNordic) February 26, 2019

    It appears that the snafu happened because these European employees weren’t quite privy to the dark history surrounding 8chan and thought it was a good way into hearts and minds. Lesson learned.

    Ana Valens contributed to this report.

    Update 2:51pm CT, Feb. 27:Coffee Stains Studios, creators of Goat Simulator and the upcoming Satisfactory, pointed out the organizational structure that THQ Nordic and its subsidiaries follow.

    Hi for absolutely no reason at all i thought itd [sic] be a great idea to share the THQ Nordic company structure that i didnt just whip up in paint 5 minutes ago, the Twitter account posted. Pls note that there are 2 THQ Nordics.

    The tweet was made specifically from the Satisfactory Twitter account but was retweeted by Coffee Stain Studios proper.

    Observant readers will note that, yes, there are two THQ Nordics: THQ Nordic AB serves as the parent company, and THQ Nordic Gmbh is the company the 8chan AMA session originated from. In fairness, the THQ Nordic Twitter account does not make any such distinction, and in fact posts content about properties both companies manage. THQ Nordic Gmbh owns the Darksiders franchise, Titan Quest, Wreckfest and others, while AB manages Gmbh and two other sub-groups, including Deep Silver, Koch Media, and Coffee Stain Studios.

    This is the first public instance of a company managed by THQ Nordic sticking its neck out to do some damage control thanks to the negative association. As of yet, no other THQ Nordic-owned studio has released a statement on the matter.

    • Twitch emotes: A beginners guide to the most-used ones
    • 10 things you never knew about 8chan, the controversial message board

    Read more: https://www.dailydot.com/parsec/thq-nordic-8chan-ama/

    Filed Under: acquisitions Tagged With: 4chan

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