TechCrunch Mobility Newsletter
Welcome back to TechCrunch Mobility, your go-to hub for the future of transportation — and now more than ever, a deep dive into AI’s growing impact on the space. Want this roundup delivered straight to your inbox for free? Sign up here, just select TechCrunch Mobility to subscribe.
Normally, I share a standalone analysis first, then follow up with my Little Bird section (my curated collection of insider insights exclusively for you). But this week I’m merging the two, because I’ve heard from dozens of insiders all weighing in on the same trending story: a brand new war for top tech talent.
Roughly seven years ago, the founder of a self-driving vehicle startup told me that competing for skilled engineers with giants like Waymo was “like a knife fight.” Today, multiple insiders confirm a new aggressive poaching war is underway, and it’s pushing base salaries (not including equity or other perks) for top candidates to between $300,000 and $500,000.
Here’s what’s driving the shift: the fast-growing, hype-filled physical AI sector is full of robotics and defense tech companies hunting for professionals with a very specific skill set (to quote Liam Neeson). And right now, most people with that exact expertise already work at robotaxi and self-driving truck developers.
As these employees get lured away to new roles in sectors like defense, legacy automakers and existing autonomous vehicle startups are forced to hike pay — or risk losing their best people to higher-paying physical AI positions.
One autonomous vehicle founder explained that ideal AV candidates bring hybrid expertise: a mix of traditional robotics engineering and cutting-edge AI know-how. It’s this niche ability to integrate AI into physical hardware (everything from humanoid and industrial robots to autonomous forklifts, plus heavy equipment for construction, mining, and agriculture) that has companies fighting over the same small pool of talent.
Defense tech startups are reportedly the most generous with compensation, thanks to the U.S. Department of Defense’s open budget. Open roles for applied researchers, AI enablement engineers, and similar positions are currently the hottest tickets in the tech industry.
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Meet your next investor or portfolio startup at Disrupt 2026
Your next funding round. Your next key hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $410.
This talent war is unlikely to hurt Waymo. As one founder noted, Waymo is completely price-insensitive when it comes to retaining top staff. But multiple insiders tell me startups and legacy automakers that have poured billions into autonomous vehicle R&D will feel the biggest impact.
I predict two key follow-on effects: First, automakers will struggle to hold onto their automated driving engineering teams, leading to widespread talent exodus. Second, smaller AV startups will need to raise even more capital just to compete, or become far more strategic about how they deploy existing funds.
Your Weekly Little Bird
You already got this week’s full insider insight earlier — just scroll up! I’m keeping this section here to remind you that I’m always looking for tips. Reach out via call, email, or Signal any time if you have off-the-record news to share.
Got a tip for our team? Email Kirsten Korosec at [email protected], message me on Signal at
kkorosec.07, or email Sean O’Kane at [email protected].
Recent Deals & Funding
Remember back in 2016, when just putting the words “self-driving” on a pitch deck almost instantly landed you a term sheet? While that 2016-era hype has bled into 2026, founders and investors have shifted their focus. As you’ve probably noticed, all the buzz now centers on physical AI: a broad category that stretches far beyond robotaxis and self-driving trucks.
Palo Alto-based venture firm Eclipse has positioned itself at the center of the physical AI boom, and just closed $1.3 billion in new capital to invest in the space. The fresh fund is split between a $591 million early-stage incubation vehicle and a second fund focused on growth-stage startups.
I sat down with Eclipse partner Jiten Behl to talk about the new fund and where the capital will likely flow. I was particularly interested in his thoughts on the firm’s expanding incubation work. Eclipse hasn’t written any new checks from the fund yet, but Behl confirmed the firm will launch more homegrown startups, saying: “We’re definitely working on a couple of really cool ideas.”
Stay tuned for updates, and read the full story on the new fund here.
Other deals that caught my eye this week:
Swedish electric hydrofoil startup Candela secured an order for 20 boats from Norwegian operator Boreal. In leadership news, Candela founder and CEO Gustav Hasselskog is stepping down; Sofia Graflund will take over as CEO, while Hasselskog moves into the role of executive chairman.
Hermeus, a Los Angeles-based defense startup developing unmanned high-speed aircraft, raised $350 million at a $1 billion valuation. The round includes $200 million in equity led by Khosla Ventures, with the remaining $150 million structured as debt.
Sora Fuel, a Cambridge, Massachusetts-based sustainable aviation fuel startup, raised $14.6 million in a round co-led by Spero Ventures and Inspired Capital, Axios first reported.
U.S. Transportation Secretary Sean Duffy said in a CNBC interview that there is room for additional airline consolidation in the United States.
Notable Reads & Industry Tidbits
Avride is the latest autonomous vehicle company facing pushback from local residents upset over robotaxi behavior. The incident in question: an Avride vehicle (with a human safety operator on board) hit and killed a mother duck in Austin, Texas’ Mueller Lake neighborhood. “It didn’t slow down or hesitate at all, just steamrolled through,” one witness said. Read the full story to see how Avride is responding.
Lower gas prices are not the only factor driving the recent boom in used electric vehicle sales.
John Deere reached a $99 million settlement to resolve pending “right to repair” litigation in the U.S. District Court for the Northern District of Illinois. Wired has an excellent breakdown of the deal and why it matters for the broader right to repair movement.
Startups and big tech companies across sectors are racing to build physical AI and automation tools, and Mariana Minerals — a firm focused on automating mining operations — is one to watch. Senior reporter Sean O’Kane interviewed founder Turner Caldwell, a former Tesla engineer who launched the startup in 2024, about its new partnership with autonomous vehicle tech firm Pronto (yes, this is the same Pronto founded by Anthony Levandowski, recently acquired by Atoms, the startup led by Uber co-founder Travis Kalanick).
Remember when Elon Musk called a smaller, cheaper $25,000 EV pointless and silly? Per Reuters sources, Tesla is now developing an all-new smaller, lower-priced electric SUV.
Volkswagen will end production of the all-electric ID.4 at its U.S. factory in Chattanooga, Tennessee. The facility will shift focus to high-volume gas-powered vehicles like the upcoming new Atlas SUV.
The ID.4 will remain available to U.S. consumers until current inventory sells out, and Volkswagen tells me existing stock is expected to last into 2027.
Volkswagen subsidiary MOIA America is making progress on its autonomous vehicle ambitions: MOIA America and Uber have begun testing autonomous microbuses in Los Angeles, ahead of a planned robotaxi launch by late 2026. Important note: the service will not launch fully driverless; the company expects to remove human safety operators in 2027. Also, “microbus” is a bit of an overstatement: these vehicles only seat four passengers.
Waymo and Waze launched a data-sharing pilot that will send pothole data collected by Waymo robotaxis to a free Waze platform built for city governments. As the program expands, any city, state, or regular Waze user in areas where Waymo operates will be able to access the data.
In more Waymo news, the Alphabet-owned company has opened its robotaxi service to the general public in Nashville, its 11th public market and counting.
TechCrunch Mobility Newsletter
