Amazon forms new robotics team and acquires Fauna Robotics after Astro's limited release

Amazon's Continued Robotics Ambition

Amazon is assembling a new team to develop a "new-to-world robot product" for consumers. This effort is supported by recent job postings seeking engineers for a product capable of navigating "dynamic home environments" and operating autonomously alongside family members.

This new initiative follows the limited market penetration of Amazon's previous home robot, Astro. Astro, an Alexa-equipped tablet on wheels, was released in 2021 as an invite-only product and shipped to a few thousand customers. A business version of Astro, released in 2023, was discontinued within a year.

Strategic Acquisitions and Team Restructuring

To bolster its robotics development, Amazon acquired New York-based Fauna Robotics in March. Fauna Robotics specializes in building robots.

Earlier this year, Amazon redeployed much of the original Astro development team and brought in an MIT roboticist to work on the new home robot project, according to LinkedIn profiles.

Market Context and Amazon's Long-Term Strategy

Amazon's CEO Andy Jassy has identified artificial intelligence and robotics as significant technological inflections. The company has a history of making long-term investments in new markets, as seen with products like Alexa and Kindle.

Analysts project growth in the humanoid robot market. Barclays forecasts the global market, currently valued at $2 billion to $3 billion, could reach approximately $40 billion by 2035, with optimistic scenarios suggesting up to $200 billion.