Archer To Acquire 3 Boeing Subsidiaries To Build Physical AI Platform

Archer Aviation agreed to acquire Boeing’s Wisk Aero, Insitu and SkyGrid subsidiaries in a transaction that will combine autonomous aircraft, uncrewed systems and airspace-management technology with Archer’s aviation-focused artificial intelligence platform.

Boeing and Archer announced the definitive agreements on 08/10, describing the transaction as the creation of an end-to-end physical AI platform spanning commercial aerospace, defense and air traffic management. The deal is expected to close by the end of 2026, subject to closing conditions including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

The three businesses bring capabilities Archer has been developing toward a broader autonomous aviation platform. Wisk has designed, built and flown six generations of electric vertical takeoff and landing (eVTOL) aircraft and completed more than 1,700 flight tests. SkyGrid provides ground-based air traffic-management technology, while Insitu develops uncrewed aircraft systems (UAS) and AI-enabled software for intelligence, surveillance and reconnaissance.

Together, the businesses have nearly two million combined flight hours, according to Boeing and Archer.

Archer Adds Autonomy And Defense Capabilities

The acquisition also expands Archer’s presence in defense. Insitu, which operates across 35 countries, has manufactured and fielded more than 3,500 UAS and currently generates more than $200 million in annual revenue based on its financials and estimates, according to the companies.

The move builds on Archer’s existing work to develop autonomous aircraft for defense applications. Archer and Anduril have been developing an autonomous vertical takeoff and landing platform, extending Archer’s aircraft and electric-powertrain technology into defense. The expansion comes as AI and autonomous systems become increasingly important to defense programs.

Archer announced its Zee AI foundation model in July as part of its physical AI strategy. The company described Zee as an aviation-specific model designed around data including aircraft state, air traffic control communications, weather, maps and other aviation information.

The Boeing assets give that model a wider set of physical aviation systems to operate across. Wisk contributes autonomous flight technology, Insitu adds operational UAS experience and SkyGrid provides infrastructure for managing aircraft within increasingly automated airspace.

Boeing Retains Access To Autonomous Flight Technology

Boeing will invest in Archer as part of the transaction and become a strategic partner. The companies will also establish a collaboration and technology-sharing arrangement.

Under that agreement, Boeing will retain access to Wisk’s core autonomous flight technology for its current and next-generation commercial and defense aircraft. Boeing said the transaction allows it to retain strategic upside through its stake in Archer while focusing current and future investments on its core businesses.

The deal gives Archer a broader aviation technology portfolio at a time when autonomy is moving beyond individual aircraft into mission systems and airspace management. Recent autonomous aviation programs for the U.S. Air Force have similarly focused on software and autonomous capabilities that extend beyond the aircraft itself.

For Archer, the acquisition also adds an established defense business to a company still building its commercial aviation operation. Archer reported $1.6 million in revenue in the first quarter of 2026, while Insitu’s business provides a substantially larger existing revenue base.

The transaction therefore combines Archer’s AI and eVTOL programs with Boeing-developed autonomy, UAS and airspace technologies, while giving Boeing continued access to a portion of the technology it developed through its ownership of Wisk.