Alphabet’s GOOGL self-driving project Waymo has acquired Latent Logic, a British AI company, in a bid to make its foray into the autonomous driving market of the U.K. and Europe.
Notably, Latent Logic is a startup which spun out of Oxford University’s computer science department. It specializes in a form of ML namely imitation learning that trains machines to perform actions similar to humans doing the same actions.
Consequently, the buyout is likely to make simulation technology of Waymo more advanced and realistic as imitation learning models human behavior of motorists, cyclists and pedestrians.
This, in turn, will strengthen the behavior prediction capability of Waymo. Further, the buyout is expected to advance the training of Waymo’s AI drivers.
Growth Prospects in the U.K. & Europe
The latest move of Alphabet is a testament to its aggressive stance toward strengthening presence in the booming self- driving vehicles market of Europe and the U.K.
With this buyout, Waymo sets up its first European engineering hub.
Per a report from Research and Markets, the European autonomous car market is expected to reach $191.6 billion by 2030, witnessing a CAGR of 18.4% between 2023 and 2030.
Further, a report from the same source also shows that the self-driving card market in Europe is expected to generate revenues of $38.51 billion by 2024, witnessing a CAGR of 49.9% over a period of 2018-2024.
Additionally, per a Society of Motor Manufacturers and Traders report, self-driving cars are anticipated to produce an economic boom of £62 billion in 2030.
Further, Department for Transport report indicates that the U.K. is on track to introduce self-driving vehicles on roads of the country by 2021. Moreover, the report shows that this particular market is expected to be worth £52 billion by 2035.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Alphabet is well poised to capitalize on the above-mentioned growth prospects on the heels of strong endeavors toward enhancing its self-driving service.
Further, the latest move is in sync with its continuous endeavors toward bolstering footprint in the global autonomous driving space. Notably, as per a report from Allied Market Research, this market is expected to hit $556.67 billion by 2026, witnessing a CAGR of 39.47% between 2019 and 2026.
Given this upbeat scenario, Tesla TSLA, General Motors GM, Apple, Amazon and Baidu BIDU is also leaving no stone unturned to bolster presence in this promising market.
Nevertheless, Alphabet enjoys the first mover advantage that is anticipated to provide it a competitive edge against its peers.
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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