Meituan, the well-known food delivery company, has acquired Light Year, an artificial intelligence startup founded by one of its co-founders, Wang Huiwen. The purchase comes just four days after Wang resigned from his position on Meituan’s board of directors due to health issues. The deal, which is worth $234 million in cash and approximately $50 million in debt, allows Meituan to take full control of Light Year. As part of the acquisition, Meituan will refund the $234 million of financing recently secured by Light Year back to investors.
Light Year, based in Beijing, was established only four months ago. Despite its short existence, the startup has already made significant moves in the field of AI. In late March, Light Year acquired OneFlow, a developer of large language models. Currently, the company employs around 70 staff members.
The purchase of Light Year by Meituan signifies the food delivery giant’s interest in expanding its capabilities in the AI sector. By fully integrating Light Year into its operations, Meituan aims to leverage the startup’s expertise in artificial intelligence to enhance its delivery services and improve customer experience.
Following the completion of the buyout, Light Year’s financial results will be consolidated with those of Meituan. This consolidation will allow both companies to work synergistically, combining their resources and knowledge to drive innovation in the food delivery industry.
Meituan’s decision to acquire Light Year comes at a time when the demand for AI solutions in the delivery sector is growing rapidly. The integration of AI technology can help streamline operations, optimize logistics, and provide personalized recommendations to customers. By acquiring Light Year, Meituan positions itself at the forefront of this trend, ensuring it remains competitive and continues to deliver exceptional service to its customers.
Overall, Meituan’s purchase of Light Year showcases its commitment to advancing its capabilities in the AI field. With the completion of this acquisition, both companies are poised to collaborate and innovate, driving the future of food delivery through the power of artificial intelligence.
