Archer Aviation Inc. is acquiring three Boeing subsidiaries – Wisk Aero, Insitu, and Skygrid – to enhance its Archer Aviation AI platform. has agreed to buy three Boeing subsidiaries: Wisk Aero, Insitu, and Skygrid, to bolster its Archer Aviation AI platform.
This strategic realignment allows Boeing to streamline its operations while simultaneously propelling Archer into a broader role. The deal helps position Archer as a provider of an end-to-end physical Archer Aviation AI platform for aerospace and defence. The sale is expected to close by the end of 2026, subject to necessary regulatory approvals.
Boeing’s focused manufacturing strategy
For Boeing, this divestiture represents a step in its ongoing effort to concentrate on core commercial, defence, and global services. Boeing CEO Kelly Ortberg, who assumed his role in August 2024, has been driving a strategy to foster a leaner, more focused organisation.
Ortberg’s vision prioritises the safety and quality of Boeing’s fundamental plane manufacturing processes. This latest transaction aligns directly with his stated aims to simplify operations and refocus the company’s efforts. The move allows Boeing to maintain access to critical autonomous flight technology through its collaboration agreement with Archer, without the direct operational overhead of these subsidiaries.
Archer builds integrated AI aerospace platform
For Archer Aviation, the acquisition transforms its business profile, moving beyond electric air taxis to become a comprehensive aerospace and defence player. Archer CEO and Chairman Adam Goldstein stated this represents “the next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business.”
The newly acquired companies are central to Archer’s ambition to create an “end-to-end physical AI platform” for aerospace and defence. This integrated system will combine the strengths of each subsidiary with Archer’s existing capabilities, allowing for the rapid development and deployment of advanced autonomous systems.
Archer plans to integrate the software architectures and extensive flight histories of Wisk, Insitu, and Skygrid into its proprietary AI foundation platform, ZEE. Goldstein noted this integration will enable the company to develop new products and services “at a fraction of the time it would have taken us to achieve the same results organically.”
Key acquisitions: Wisk, Insitu, and Skygrid
The three subsidiaries joining Archer Aviation each bring distinct yet complementary capabilities. These businesses have collectively amassed nearly 2 million flight hours, providing a robust foundation of operational data and experience for Archer’s advanced AI platform.
Wisk Aero’s eVTOL advancements
Wisk Aero is a leading electric vertical take-off and landing (eVTOL) aircraft maker. Over 16 years, Wisk has designed, built, and flown six generations of eVTOL aircraft, conducting more than 1,700 test flights. Its Generation 6 autonomous, all-electric eVTOL aircraft completed its maiden flight in 2025.
Wisk was initially a joint venture between Boeing and Kitty Hawk Corp. formed in 2019, becoming wholly owned by Boeing in May 2023. This acquisition brings Archer significant intellectual property and proven expertise in autonomous flight systems, which will be shared with Boeing under their new collaboration agreement for future commercial and defence aircraft.
Insitu’s established drone market presence
Insitu is a prominent drone company specialising in intelligence, surveillance, and reconnaissance (ISR) unmanned aircraft systems (UAS). It currently generates over $200 million in annual revenue and operates profitably. The company has manufactured and fielded more than 3,500 UAS.
Insitu supports armed forces in 35 countries globally. Its product range includes small UAS, vertical take-off and landing (VTOL) capabilities, and software solutions vital for military intelligence and surveillance operations. Boeing acquired Insitu in 2008 for approximately $400 million.
Insitu’s widespread operations, with offices in the U.S., Australia, the U.K., and the United Arab Emirates, offer Archer an immediate and substantial presence in the defence sector.
Skygrid’s air traffic management technology
Skygrid is an air traffic software firm that provides aircraft-agnostic digital airspace and traffic-management technology. Established in 2018 as a joint venture with SparkCognition, Skygrid focused on building an AI and blockchain-based airspace management system.
This technology proves critical for safely integrating the increasing number of autonomous and electric aircraft into existing airspaces. Its inclusion within Archer provides a vital piece of the puzzle for managing future air mobility, ensuring safe and efficient operations for eVTOLs and drones alike.
From legal disputes to strategic partners
The collaboration between Archer, Wisk, and Boeing represents a significant shift from their past relationship. In 2021, Wisk initiated a lawsuit against Archer, alleging trade secret theft and patent infringement.
The legal dispute centred on accusations that Archer’s then Vice President of Engineering, Thomas Muniz, had wiped computer data before joining Archer. Wisk also claimed Archer had subsequently recruited Wisk employees. However, the parties reached an undisclosed settlement in August 2023.
That settlement resolved the litigation and paved the way for a collaboration agreement focused on advancing the air mobility industry. Under the terms, Archer agreed to make Wisk its exclusive autonomy technology provider for new aircraft models. Brian Yutko, former CEO of Wisk and now vice president of product development for Boeing’s commercial plane segment, played a key role in fostering this new business relationship.
Broader implications for aerospace and defence
This Boeing-Archer Aviation deal signifies a profound recalibration of strategic priorities within the aerospace industry, especially concerning autonomous flight and artificial intelligence. By consolidating these AI-driven assets, Archer aims to become a diversified powerhouse, moving beyond its initial focus on passenger-carrying electric air taxis.
The company has already been expanding its footprint in the defence sector. In July, Archer and defence startup Anduril unveiled two autonomous aircraft variants, Halo and Thunder, at the Farnborough International Airshow in England. The automated defence production sector is seeing growing investment.
Halo is an autonomous VTOL aircraft designed for both commercial cargo and rescue operations, as well as defence applications. Thunder is a Group 5 autonomous attack drone, capable of carrying a maximum take-off weight of up to 1,320 pounds and operating at altitudes up to 18,000 mean sea level, according to military guidelines.
These developments highlight the growing importance of advanced investment in defence technology.
The integration of Insitu’s existing $200 million annual revenue and its fleet of over 4,000 Group 2 and 3 drones — weighing between 55 pounds and 1,320 pounds and operating from 3,500 feet above ground level to 18,000 feet mean sea level — provides immediate financial and operational scale. This greatly accelerates Archer’s path to profitability and market leadership in unmanned systems.
The transaction also highlights the increasing demand for industrial AI solutions that can manage complex systems and provide real-time decision-making capabilities. As manufacturing and aerospace become more automated, the need for advanced software to control and coordinate diverse assets grows.
This deal places Archer at the forefront of this trend, leveraging Boeing’s long-standing investments in these forward-looking technologies. Elsewhere, new manufacturing facilities for AI are also coming online.
Archer Aviation CEO Adam Goldstein summed up the company’s new direction simply: “We’re not just an air taxi company anymore.” This acquisition positions Archer to play a far broader role in the future of air mobility and national security, driven by a powerful blend of hardware and an integrated AI platform.
For African industries, particularly in logistics, resource management, and potentially defence, the advances in autonomous flight and AI platforms could present new operational efficiencies and capabilities. While urban air mobility is still nascent on the continent, the evolution of drone technology for surveillance and cargo could find significant applications.
This is especially true in areas with challenging infrastructure, where air delivery and monitoring offer compelling solutions.
