Israeli Nexar and US Nauto Merge to Lead Physical AI in Smart Mobility
Israeli startup Nexar, specializing in AI platforms for physical environments using vehicle cameras, and US-based Nauto, a developer of AI safety systems for fleet vehicles, have finalized a merger agreement. The financial terms were not disclosed. This union combines two leading companies in driving data and smart transportation, aiming to offer an independent data platform that integrates complementary AI models, extensive databases, and real-time monitoring technologies while ensuring driver privacy through anonymization.
The merged company will be led by Nexar's current CEO, Zack Greenberg, with Nauto's founder and CEO, Stefan Heck, serving as chairman. This merger creates a significant force in the Physical AI market, which connects software to the physical world for autonomous vehicles, smart infrastructure management, and data-driven insurance. Their joint data engine will leverage over 300 million miles of real-world driving footage monthly across more than 50 countries, with a cumulative history exceeding 10 billion miles. This vast, manufacturer-independent dataset provides insurers, autonomous vehicle developers, and urban infrastructure managers with accurate real-world insights beyond laboratory simulations.
Both companies have strong funding histories and top-tier investors from technology, automotive, and insurance sectors. Nexar, founded in 2015 by Eran Shir and Prof. Ehud Shavit, has raised around $150 million, including notable rounds of $52 million in 2020 and $53 million in 2021, with investors such as Lamborghini, Samsung, Qualcomm, and Liberty Mutual. Its valuation in recent rounds was estimated between $300 million and $400 million. Nauto, based in Sunnyvale, California, is a well-established player in fleet safety with nearly $175 million raised, including a major $159 million Series B in 2017 led by SoftBank’s Vision Fund alongside General Motors, BMW, and Allianz, with an estimated valuation above $400 million at that time.
The merger eliminates direct competition between the two and enables them to present a unified front with massive big data assets against tech giants and major automakers, targeting commercial fleet markets and autonomous driving systems. Current customers will continue working with their familiar teams and products, with further details on the joint roadmap and full technological vision to be announced upon deal closure.
