AI-Powered Industrial Automation: Rivian’s $115M Spin-Off Could Reshape Every Factory

Q: How much funding does Mind Robotics have?

Mind Robotics has secured a $115 million seed funding round. The round was led by the venture capital firm Eclipse Ventures .

The factory floor is getting a new kind of apprentice, and it learns from everything it sees.

In November 2025, electric vehicle maker Rivian made a decisive move beyond the automotive sphere, spinning off its second standalone company this year: Mind Robotics. With a substantial $115 million seed funding round led by Eclipse Ventures, this new venture isn’t just another robotics startup. It represents a strategic pivot to monetize Rivian’s operational expertise by focusing on a singular, ambitious goal: using AI-powered industrial automation to transform how physical-world businesses operate.

This analysis delves into the strategic rationale behind Mind Robotics, exploring why an automotive company is betting on this specific niche of automation and what its potential “robotics data flywheel” could mean for the future of manufacturing and logistics.

Why is Rivian Betting on Industrial AI Robotics?

Rivian’s decision is a calculated response to the realities of modern manufacturing and the evolving potential of artificial intelligence. The company sees a significant, untapped opportunity in applying AI to the physical world, a domain it knows intimately.

During Rivian’s Q3 2025 investor call, CEO RJ Scaringe laid out the core reasoning. He stated that the potential for AI to shift how we operate in the physical world is “in some ways, unimaginably large”. The creation of Mind Robotics is the “culmination” of Rivian’s desire for “direct control and direct influence over the design and development of advanced AI robotics,” focused squarely on industrial applications.

The venture is not a distant R&D project but is born from immediate, practical needs. Scaringe explained that Mind Robotics emerged from Rivian’s own long-term planning for its manufacturing infrastructure. The company identified a need to “develop products and robotic solutions that allow us to run and operate our manufacturing plants more efficiently” . Instead of solely relying on external vendors, Rivian is building the solutions itself, with the intent to use them internally and sell them to other industries.

AI-Powered Industrial Automation: Rivian’s Strategy Behind the Robotics Data Flywheel

At the heart of Mind Robotics’ potential competitive edge is a concept Rivian calls the “robotics data flywheel” . This strategy is a classic example of leveraging existing assets to create new value.

The idea is straightforward yet powerful: Mind Robotics will use data from Rivian’s own manufacturing and logistics operations as the foundational training set for its AI models . In practice, this means every process on the Normal, Illinois factory floor—from parts logistics to assembly—generates real-world data. This data is used to train and refine the AI systems that power Mind Robotics’ solutions, making them smarter and more efficient. These improved systems are then redeployed in Rivian’s factories, generating even more data, creating a self-reinforcing cycle of improvement—a data flywheel.

This gives Mind Robotics a key advantage over pure-play robotics startups: it is born with a built-in, complex, and scalable testing and data-generation environment.

What Do We Know About Mind Robotics’ Plans?

Public details are intentionally sparse, but filings and announcements provide clues about the company’s direction and structure.

Leadership and Funding: Rivian CEO RJ Scaringe will serve as Chairman of the Board for Mind Robotics, with Rivian maintaining a shareholder stake. The $115 million seed round was led by Eclipse Ventures, whose partner, Jiten Behl, is a former Rivian executive . This pattern of collaboration with Eclipse was established earlier in 2025 with the spinoff of Rivian’s micromobility company, Also Inc.
A Broad Scope: A trademark application for Mind Robotics hints at an intentionally wide scope. It lists potential uses ranging from machinery and vehicles to the unexpectedly broad “incubators for eggs,” suggesting a platform approach rather than a single-product focus.
The Talent Pipeline: While Rivian has not confirmed employee transfers, the company hinted at the possibility, noting its “strong bench of technology talent” that can identify new areas of value. This was the case with the Also spinoff, indicating that some Rivian engineers may transition to the new venture.

How Mind Robotics Fits into the Broader Industrial AI Trend

Rivian is far from alone in seeing the potential in this sector. The move places Mind Robotics squarely within a major industry trend.

Investment in robotics and industrial AI has surged across Silicon Valley. As of September 2025, funding in the sector had already exceeded $8.5 billion, putting it on track for its biggest year since 2021 . Rivian’s key competitors in the automotive space are making similar bets:

Tesla is aggressively developing its Optimus humanoid robot .
General Motors has also confirmed it is working on its own robotics and AI division focused on “collaborative robots”.

What may set Mind Robotics apart is its foundational access to the continuous stream of operational data from a live, scaling automotive manufacturing business—an asset most startups lack.

The Strategic “Why”: Diversification and High-Margin Opportunities

From a strategic business perspective, the creation of Mind Robotics is a savvy move. It allows Rivian to leverage its intellectual property and operational data into a new, potentially high-margin revenue stream . The industrial automation market is vast, spanning every physical industry, and typically offers better margins than the capital-intensive business of vehicle manufacturing .

By spinning off Mind Robotics, Rivian can pursue this adjacent opportunity without diverting focus from its core mission of ramping up EV production and launching the critical R2 model in 2026 . It’s a portfolio strategy that could help diversify revenue and reduce dependence on the notoriously competitive automotive market .

FAQ

What is Mind Robotics?

Mind Robotics is an industrial AI and robotics company spun off from Rivian in November 2025. It is focused on developing AI-powered robotic solutions for manufacturing and other physical-world business operations .

How much funding does Mind Robotics have?

Mind Robotics has secured a $115 million seed funding round. The round was led by the venture capital firm Eclipse Ventures .

What is a “robotics data flywheel”?

A “robotics data flywheel” is a strategy where operational data from Rivian’s manufacturing plants is used to train and improve Mind Robotics’ AI systems. These improved systems are then deployed, generating more data, which in turn makes the AI even better, creating a self-reinforcing cycle of improvement .

Is Rivian’s CEO involved in Mind Robotics?

Yes, RJ Scaringe, the CEO of Rivian, will serve as the Chairman of the Board of Directors for Mind Robotics .

How does this relate to Rivian’s self-driving car technology?

Rivian has stated it sees “synergies shared between the development of autonomous driving and physical AI.” Both technologies rely on AI models to perceive and operate autonomously in the real world, suggesting a shared foundation in core AI research and development .

Fast Facts

Rivian has launched Mind Robotics with $115M in funding to pioneer AI-powered industrial automation. Its core strategy centers on a “robotics data flywheel,” using real-world data from Rivian’s own factories to train and refine AI systems that boost operational efficiency. This positions Mind Robotics in a high-margin automation market, distinct from Rivian’s core EV business.

Stay Ahead in the World of Industrial AI

The transition to intelligent automation is just beginning. Subscribe to the CreedTec Newsletter for weekly, in-depth analysis on the companies and technologies shaping the future of manufacturing.