Sumitomo Rubber Industries plans to acquire California-based artificial intelligence startup Viaduct for approximately ¥15 billion ($102 million), Nikkei reported, as the Japanese tire manufacturer seeks to expand beyond its traditional business into predictive vehicle maintenance services.
The acquisition represents a significant escalation of a relationship that began in August 2023 with joint proof-of-concept testing. Sumitomo first invested an undisclosed amount in Viaduct in January 2024, and now aims to fully control the Menlo Park-based company founded in 2018.
Viaduct’s AI platform analyzes sensor data to predict automotive component failures, including engine and brake problems. The startup recently completed a $10 million Series B funding round led by FM Capital, with participation from Stellantis Ventures and other investors.
The deal comes as automotive predictive maintenance faces persistent challenges despite years of industry enthusiasm. Companies struggle with data quality issues and high implementation costs, while vehicle operators remain hesitant to pay premium prices for maintenance prediction services.
Sumitomo intends to combine Viaduct’s technology with its proprietary “Sensing Core” system, which analyzes wheel-speed signals to monitor tire and road conditions. The company projects launching comprehensive vehicle health monitoring services as early as this year, though the timeline appears ambitious given the technical complexities involved.
The acquisition reflects growing consolidation in automotive AI as established manufacturers seek to control critical technologies rather than rely on partnerships.
