Alphabet's Sidewalk Labs Offshoot Is Now a Unicorn (bloomberg.com) 8
After Alphabet shelved plans to build its own city and wound down the company in charge of the project, a group of former employees is carrying on its legacy. Bloomberg reports: Their startup, Sidewalk Infrastructure Partners LLC, is pursuing ambitious infrastructure projects, including the construction of specialized roads for self-driving cars, a sprawling smart grid project and the implementation of technology to help cities build 5G wireless networks. On Wednesday, the company plans to announce it raised $400 million from StepStone Group Inc., a private-market investment firm whose focuses include infrastructure. The deal values the business, known as SIP, at $1.25 billion, said a person familiar with the terms who asked not to be identified because they're private.
The idea for SIP came from Sidewalk Labs, the smart-city company that Google created in 2015. Sidewalk's flagship project was Quayside, a plan to develop a 12-acre site in Toronto to showcase various high-tech urban ideas. Building a city from scratch made sense as a way for Google's parent company to experiment with urban innovation, said Jonathan Winer, SIP's co-founder and co-chief executive officer. However, "There were a number of infrastructure systems that needed innovation now, not in 10 years," he said. In 2019, he and several other Sidewalk employees left to form SIP with a plan to build large, technically sophisticated projects. Alphabet and the Ontario Teachers Pension Plan funded the effort as its only investors.
[...] SIP is set up in an unusual way for a startup, operating sometimes as a sort of venture capital firm and other times as an operator building projects itself. This allows it to pursue a wider range of projects, Winer said. Among them is a 40-mile highway between Detroit and Ann Arbor, Michigan, designed for autonomous and connected vehicles. Michigan's state government unveiled the plan in 2020, and Winer said the first stretch of road will open this year. He's in talks with other states about similar developments, he said. SIP has also invested $100 million a project in California that uses smart thermostats and plugs to compensate customers for reducing their energy use at times of high demand. Much of SIP's business involves working with governments. [...] In addition to being an investor, Alphabet is an active participant in several SIP projects. Waymo, Alphabet's self-driving car unit, is on the advisory board of the Michigan highway project. Google's Nest thermostats work with the California program. "We benefit tremendously from Alphabet's technology and insight," said Winer. "And sometimes that insight translates into some kind of business transaction."
The idea for SIP came from Sidewalk Labs, the smart-city company that Google created in 2015. Sidewalk's flagship project was Quayside, a plan to develop a 12-acre site in Toronto to showcase various high-tech urban ideas. Building a city from scratch made sense as a way for Google's parent company to experiment with urban innovation, said Jonathan Winer, SIP's co-founder and co-chief executive officer. However, "There were a number of infrastructure systems that needed innovation now, not in 10 years," he said. In 2019, he and several other Sidewalk employees left to form SIP with a plan to build large, technically sophisticated projects. Alphabet and the Ontario Teachers Pension Plan funded the effort as its only investors.
[...] SIP is set up in an unusual way for a startup, operating sometimes as a sort of venture capital firm and other times as an operator building projects itself. This allows it to pursue a wider range of projects, Winer said. Among them is a 40-mile highway between Detroit and Ann Arbor, Michigan, designed for autonomous and connected vehicles. Michigan's state government unveiled the plan in 2020, and Winer said the first stretch of road will open this year. He's in talks with other states about similar developments, he said. SIP has also invested $100 million a project in California that uses smart thermostats and plugs to compensate customers for reducing their energy use at times of high demand. Much of SIP's business involves working with governments. [...] In addition to being an investor, Alphabet is an active participant in several SIP projects. Waymo, Alphabet's self-driving car unit, is on the advisory board of the Michigan highway project. Google's Nest thermostats work with the California program. "We benefit tremendously from Alphabet's technology and insight," said Winer. "And sometimes that insight translates into some kind of business transaction."
EPCOT (Score:2)
Re: (Score:3)
Re: STARTING AT FIFTEEN (Score:2)
Best post on Slashdot for months.
Sounds terrible. (Score:4, Interesting)
I don't know about you but I don't want any part of my city to be dependent on running bloated JavaScript software written by a company who cares more about features than flawless behavior. If they really want to build an advanced city then they should start by rethinking how it's constructed and maintained. Seriously, address the factors that make building stuff expensive. It could be new construction techniques, materials, or designs but just putting electronics in everything that may fail at any given moment isn't a smart move much less a smart city. They should also look to make it fully sustainable by avoiding CO2 emitting materials, incorporating water recycling, and collecting solar power where suitable. Ultimately, a deep learning AI should be used to generate an optimal layout to minimize traffic, even if it's self-driving. Finally, without a legal framework to promote recyclable products, you're going to have the same recycling conundrum we have now.
VCs are dumping money into the disaster city of tomorrow by ignoring the real challenges of the future.
'specialized roads for SDCs' (Score:3)
Are there enough of those cars going that way? (Score:2)
Unicorn? (Score:2)
Quick, the Brits are looking for it.