Welcome back to TechCrunch Mobility, your go-to source for the future of transportation and the role of AI. Sign up for TechCrunch Mobility to have updates delivered to your inbox!
Normally, I provide an analysis followed by insider insights. However, today I’m merging them as there are numerous updates about the current talent wars.
Around seven years ago, a self-driving vehicle company founder described competing for talent with Waymo as “like a knife fight.” Now, a new poaching war is underway, pushing salaries (excluding equity and other benefits) to between $300,000 and $500,000.
The buzz in the AI sector involves robotics and defense tech companies searching for those with specific skills. These talents mainly work in companies focusing on self-driving trucks and robotaxis.
As employees transition to other fields, including defense, automakers and startups face pressure to raise salaries or risk losing talent to better-paying “physical AI” roles.
The optimal candidate for an autonomous vehicle company possesses hybrid skills, combining classical robotics and AI expertise, as per a founder. Companies crave this knowledge to integrate AI into hardware like humanoid robots and autonomous forklifts, impacting construction, mining, and agricultural equipment sectors.
Defense tech startups offer generous compensation due to the Department of Defense’s funding. Positions like applied researcher or AI enablement engineer are currently sought-after.
Waymo remains largely unaffected, given its insensitivity to costs. However, startups and automotive sectors, heavily invested in autonomous vehicles, are likely to feel the impact the most.
I foresee a twofold consequence. Automakers will find retaining engineers in autonomous driving challenging, leading to departures. Concurrently, startups will need to secure more funding or optimize resource usage.
A little bird
You’ve already received this week’s inside scoop. Scroll up for details! The engaging graphic is here to remind you to reach out or email with tips!
Got a tip for us? Email Kirsten Korosec at [email protected] or reach out via Signal at kkorosec.07, or email Sean O’Kane at [email protected].
Deals!
Remember how in 2016 the term “self-driving” on a pitch deck often led to quick funding offers? Fast forward to 2026, while self-driving still attracts attention, the focus has shifted to physical AI, spanning beyond just robotaxis and self-driving trucks.
The Palo Alto-based venture firm Eclipse is central to physical AI investment, amassing an additional $1.3 billion to capitalize on this sector. The fresh $1.3 billion is split between a $591 million early-stage incubation fund and another focused on growing startups.
I spoke with Eclipse partner Jiten Behl about the fund’s focus and their startup incubation plans. While no new investments have been made, Behl mentioned upcoming innovative projects.
Stay tuned, and explore the full story here.
Other deals that caught my eye…
Candela, a Swedish electric hydrofoil firm, secured a 20-boat deal with Norwegian operator Boreal. Candela’s CEO Gustav Hasselskog is stepping down as Sofia Graflund takes the helm, with Hasselskog transitioning to executive chairman.
Hermeus, a Los Angeles-based defense startup creating unmanned aircraft, raised $350 million, reaching a $1 billion valuation. This includes $200 million in equity led by Khosla Ventures and $150 million in debt.
Sora Fuel, a sustainable aviation fuel startup in Cambridge, Massachusetts, secured $14.6 million in a round led by Spero Ventures and Inspired Capital, according to Axios.
Transportation Secretary Sean Duffy stated on CNBC that there’s room for airline mergers in the U.S.
Notable reads and other tidbits
Avride, an autonomous vehicle company, is facing resident backlash after a robotaxi (with a safety operator) killed a duck near Austin, Texas. Reports suggested there was no hesitation by the vehicle, triggering criticism. Discover how Avride is responding.
Gas prices aren’t the sole driver of used EV sales.
John Deere agreed to a $99 million settlement over “right to repair” litigation in Illinois. Wired provides an insightful breakdown of the issue and its significance.
Startups and major tech firms are delving into physical AI and automation. Mariana Minerals, targeting the mining industry, is part of this trend. Senior reporter Sean O’Kane interviewed founder Turner Caldwell, a former Tesla engineer who established his startup in 2024. Learn about their partnership with autonomous vehicle tech firm Pronto.
Remember Elon Musk’s skepticism about a $25,000 EV? Well, Tesla is reportedly developing a new, cheaper electric SUV.
Volkswagen is halting production of the all-electric ID.4 at its U.S. plant in Chattanooga, Tennessee, to make room for vehicles like the gas-powered Atlas SUV.
The ID.4 will remain available in the U.S. until current supplies are exhausted, expected to last into 2027.