Palladyne AI
| Company type | Public |
|---|---|
| Industry | Robotics, Artificial intelligence software |
| Predecessor | Sarcos Technology and Robotics Corporation |
| Founded | 1983 |
| Founder | Stephen Jacobsen |
| Headquarters | Salt Lake City , United States |
Area served | Worldwide |
Key people | Ben Wolff (CEO) |
| Products | AI software for robotic platforms |
Number of employees | Approximately 75 (post-2023 layoffs) (2023) |
Palladyne AI Corp.—previously known as Sarcos Technology and Robotics Corporation—is an American enterprise established in 1983 by University of Utah professor Stephen Jacobsen under the name Sarcos Research Corporation. Initially recognized for its advancements in robotics, the company shifted its focus entirely in 2023 to developing artificial intelligence (AI) software tailored for robotic platforms, discontinuing all hardware manufacturing. In March 2024, the firm rebranded as Palladyne AI and is based in Salt Lake City.
Early history
Sarcos originated as a bioengineering research organization and expanded by 1990 into commercial robotics, serving sectors such as entertainment, healthcare devices, and aerospace. Among its prominent projects were animatronic creations for Jurassic Park: The Ride and equipment designed to test NASA space suits.
In 2001, Sarcos was awarded a multi-stage contract from DARPA to create a powered exoskeleton intended for military applications. By 2006, prototype development was underway; however, despite plans for production by the US Army beginning in 2008, the designs’ reliance on tethered power restricted mobility, causing diminished interest from the Department of Defense.
Raytheon acquired Sarcos in 2007 to broaden its robotics capabilities, operating it under the name Raytheon Sarcos until 2015. Founder Jacobsen left the company in 2009, with Fraser Smith stepping in as president.
In 2015, Fraser Smith together with intellectual property strategist Ben Wolff led a group to purchase Sarcos from Raytheon. Wolff assumed the CEO role between 2015 and 2016. Starting in 2016, Sarcos attracted investments from firms including Microsoft, Caterpillar, and GE to advance commercialization of its "Guardian" series of robotic exoskeletons and manipulators.
Sarcos went public in September 2021 through a merger with SPAC Rotor Acquisition Corp., listing on NASDAQ under the ticker STRC. Kiva Allgood took over as CEO in December 2021 with a mandate to accelerate commercial expansion.
In April 2022, Sarcos acquired Pittsburgh-based robotics company RE2, Inc., which specialized in autonomous and remote-controlled mobile robots, integrating their technologies into the Guardian product line.
Business losses and subsequent conversion to a software company
After becoming publicly traded on Nasdaq, Sarcos encountered difficulties generating enough revenue to support its workforce of approximately 280 employees. Laura Peterson, formerly a Boeing Vice President, was named interim CEO in May 2023 and confirmed as permanent CEO by October.
With share prices falling below Nasdaq’s minimum bid requirement in June 2023, Sarcos implemented a reverse stock split at a ratio of 1-for-6 to comply with listing standards. This was followed by a reduction of roughly 75 staff members in July 2023 aimed at reducing operational expenses.
Despite these efforts, financial challenges persisted. While Sarcos had anticipated shipping between 300 and 500 robotic units annually by late 2021, only two Guardian "Sea Class" units—primarily developed at the acquired RE2 Robotics subsidiary—had been delivered by October 2023. Nevertheless, in September 2023, Sarcos secured a $13.8 million Phase II SBIR contract from the U.S. Air Force to develop AI and machine learning software for its Guardian robots.
In November 2023, the board resolved to halt all hardware design and manufacturing activities to curb ongoing losses. This strategic shift involved laying off over 150 employees—including all remaining personnel at RE2—and refocusing exclusively on AI software development for robotic systems.
In January 2024, co-founder and former CEO Ben Wolff returned to lead the company as CEO, replacing Peterson to guide Sarcos through its transition toward an industrial AI software enterprise.
Name change
In March 2024, the organization revealed plans to transition its name from Sarcos to Palladyne AI, with the stock ticker being updated from STRC to PDYN effective April 2024. This rebranding signifies a deliberate move towards prioritizing the commercialization of its AI and machine learning technologies cultivated since 2020.