Boeing is selling three of its electric vertical takeoff and landing subsidiaries to Archer Aviation. The aerospace giant is also taking an undisclosed stake in the San Jose-based company as part of the agreement.
The subsidiaries moving to Archer include Wisk Aero, SkyGrid, and Insitu. Wisk Aero develops autonomous electric aircraft, SkyGrid builds air traffic management systems for urban air taxis, and Insitu manufactures high-altitude drones utilized by the US Navy.
Both companies will share technology under the terms of the deal. Boeing will keep access to Wisk's autonomous flight systems for current and future commercial and defense projects. Wisk began in 2019 as a joint venture between Boeing and Kitty Hawk, a flying taxi startup funded by Google cofounder Larry Page. Wisk has designed, built, and flown six generations of its eVTOL aircraft across more than 1,700 flight tests. Wisk previously sued Archer in 2021 over trade secret theft and patent infringement allegations, but the parties settled in 2023. That settlement made Wisk the exclusive provider of autonomous flying technology to Archer.
The transaction likely allows Boeing to direct its financial focus toward core commercial airplanes. Boeing currently faces an enormous $715 billion backlog representing over 6,200 ordered planes that await production. The company also deals with intense regulatory scrutiny following notable safety incidents, including a 2024 Boeing 737 Max flight where a fuselage section blew out mid-air.
The agreement simultaneously strengthens Archer's position in the competitive race to launch commercial electric air taxis. Archer plans to debut pilot air taxi services in New York, Texas, and Florida before the end of the year. The company also establishes itself as a military supplier through a newly unveiled eVTOL aircraft co-developed with Palmer Luckey's defense tech company Anduril.
Brian Yutko, Boeing vice president of Commercial Airplanes Product Development, provided a statement regarding the transaction. He stated that the deal is a win-win for both companies. He explained that it allows Wisk, SkyGrid, and Insitu to speed up capability development and time to market. He added that the agreement ensures Boeing capitalizes on its investments in these technologies over the past two decades through continued development in its core businesses.
Adam Goldstein, CEO of Archer, also commented on the transaction. He described the deal as a watershed moment for Archer. He noted it represents the next big step forward in building a diversified platform, rapidly growing the revenue base, and bringing scale to the business.
The companies will now proceed with sharing technology and integrating the acquired subsidiaries into Archer's ongoing commercial and military operational plans.
