Covariant (company)
| File:Covariant AI.png | |
| Company type | Private |
|---|---|
| Industry | |
| Founded | 2017 |
| Founders |
|
| Headquarters | |
Key people |
|
| Website | covariant |
Covariant—previously known as Embodied Intelligence—is a U.S.-based company specializing in artificial intelligence and robotics, with its headquarters located in Emeryville, California.
History
Established in 2017 under the name Embodied Intelligence by Pieter Abbeel, Peter Chen, Rocky Duan, and Tianhao Zhang, Covariant concentrates on cutting-edge robotic automation solutions tailored for factories and warehouse environments. Peter Chen acts as the CEO, Pieter Abbeel holds the roles of president and chief scientist, while Rocky Duan fulfills the position of CTO. Abbeel also directs the Robot Learning Lab at the University of California, Berkeley, where Chen, Duan, and Zhang were his students. The founding team possesses research experience linked to OpenAI and Microsoft.
The firm creates software that empowers existing robotic hardware to execute a variety of tasks through a combined approach utilizing both imitation learning and reinforcement learning. Drawing from research conducted at Berkeley, they developed the Covariant Brain—an AI platform that drives robotic arms designed for warehouse operations. Since 2018, Covariant has gathered data from 30 different robotic arm models globally running the Covariant Brain software, compiling a dataset consisting of billions of real-world robotics interactions.
In February 2020, Covariant teamed up with industrial robotics manufacturer ABB to co-develop robots intended for warehouse applications. The automation enterprise Knapp implemented the Covariant Brain within a warehouse serving the German wholesaler Obeta. By 2023, logistics provider Radial adopted this technology for robotic order sorting tasks, while the German e-commerce company Otto Group integrated it to facilitate item induction.
On March 11, 2024, Covariant introduced RFM-1 (Robotics Foundation Model 1), a foundational robotics model that equips robots with human-like reasoning capabilities and enhanced environmental perception. This model was trained using diverse data sources including text, images, videos, robot motions, and sensor inputs collected from warehouse robots operating with the Covariant Brain. It represents a significant advancement in robot learning by leveraging deep learning alongside reinforcement learning techniques.
Covariant’s portfolio features solutions such as goods-to-person picking, kitting, depalletization, item induction, and order sortation—all powered by their Covariant Brain technology. Their innovations enable robotic arms to pick and sort items from bins at speeds exceeding those of human workers.
Funding
At inception, Covariant raised $7 million from Amplify Partners among other investors. On May 6, 2020, the company secured $40 million in Series B financing led by Index Ventures, following an earlier $20 million Series A round. Subsequently, on July 27, 2021, it obtained $80 million through Series C funding. Most recently, on April 4, 2023, an additional $75 million was raised, bringing total capital raised to $222 million.
2024 Amazon Partnership and Covariant's "Zombie Company" Characterization
On August 30, 2024, Amazon revealed a "non-exclusive" licensing arrangement with Covariant, integrating 25% of its employees and bringing founders Abbeel, Chen, and Duan into Amazon’s team.
A whistleblower complaint filed in 2025 with the Federal Trade Commission, Securities and Exchange Commission, and Department of Justice disclosed that the agreement involved an upfront payment of $380 million, followed by a $20 million licensing fee due the following year—significantly lower than Covariant’s $625 million valuation from 2023. Allegedly structured as a reverse acquihire, Amazon aimed to acquire essential technology and talent without pursuing a full acquisition to circumvent antitrust concerns. While the founders obtained considerable financial compensation, both investors and employees experienced notable dilution of their equity stakes. The contract also enforced stringent limitations on Covariant’s future ability to sell or license its technology, with financial penalties for breaches. The complaint labels Covariant a "zombie company," primarily existing to receive the final licensing installment.
Since the August 2024 announcement of the Amazon deal, Covariant has remained silent on its website and social media platforms.