Xos Trucks raises $20M to put more of its electric commercial trucks on the road

Commercial electric vehicle startup Xos Trucks has raised $20 million, funding it will use to ramp up production ahead of potential new demand fueled by a landmark emissions rule adopted by California that will require more than half of all trucks sold in the state to be zero-emissions by 2035.

The startup, which was formerly known as Thor Trucking, raised the funds from a group of investors including Proeza Ventures, a mobility-focused VC firm backed by Metalsa’s holding company, and BUILD Capital Group. Xos also gained a few new board members along with the capital. Rodolfo Elias Dieck of Proeza Ventures and Mark Lampert, a former Daimler executive who is now at Build Capital, have joined the board. Xos has beefed up its executive ranks as well, including hiring Kingsley Afemikhe as its CFO and Rob Ferber, employee number one and science director at Tesla, as its CTO.

“We’re excited to continue growing our operations to provide best-in-class last-mile electric vehicles for our customers,” said Dakota Semler, co-founder and CEO of Xos Trucks. “It’s our goal to provide reliable, affordable, and sustainable transportation as the volume of e-commerce demands are increasing, and have accelerated during the pandemic.”

Funding will be used to expand operations and scale up production of its electric skateboard chassis that is designed for Class 6 trucks, the medium-duty commercial vehicles that are often used in last-mile delivery in dense urban areas. This skateboard, known as the X-Platform, was designed to accommodate a variety of medium-duty bodies, wheelbases and range requirements up to 200 miles. Metalsa, the Mexico-based automotive supplier, helped Xos with the design and is providing components to the chassis.

Xos vehicles have been used by UPS on customer routes in the Los Angeles area for the past eight months, according to the company. Loomis, an existing customer of Xos, has order another 20 trucks following a pilot program in 2019.


Source: Tech Crunch

TikTok’s big UnitedMasters deal is the way forward for creators looking to secure their bag

TikTok is right in the jaws of a thorny situation with the U.S. Government regarding its ownership, but it’s sending a clear message today that it is not sitting on its heels with big deals. Yesterday, it announced a deal with UnitedMasters to allow artists on TikTok to distribute their songs directly to streaming services and other partners directly.

UnitedMasters is the un-record-label label — in fact a direct distribution company founded by former president of Interscope Records, Steve Stoute. The firm allows musicians (especially budding ones) to pay a competitive distribution rate to get access to Spotify, YouTube, SoundCloud, Apple Music and other services. It also gets them access to analytics, retargeting, CRM tools and individual deals that UM makes with brands like ESPN and the NBA.

Normally, the path between an artist being able to go viral on TikTok and be included in the next NBA 2k or before an official game on the air would be a long one involving a lot of knives out for pieces of the pie. UnitedMasters shortcuts all of this.

The simple scenario is this:

  • An aspiring artist or songwriter puts out a song or riff on TikTok (likely one of many).
  • This one has something and it catches on the algorithm and generates numbers.
  • The creator opts in to participating in UnitedMasters’ program.
  • They give up a cut of 10% but get direct distribution into the major streaming buckets and potential A-grade partners. (There’s also a $5/mo subscription option.)
  • They can also market things like tickets, merch and more directly to fans using UM’s customer tools.
  • The artist keeps 100% of their royalties.

Which is why a tie up with TikTok makes a hell of a lot of sense. One of the biggest issues with viral social platforms has been the way that they reward creators. Twitter’s Vine, of course, squandered their opportunity there. Even YouTube has had major problems providing consistent revenue to many of its top creators, with a long trend towards big hitters monetizing off platform in order to earn consistent, durable money.

TikTok has already announced a creators fund with a significant purse, but it needs to go beyond that. We’ve seen over and over how young creators on the platform create viral waves of attention for TikTok and millions of re-enactments and remixes. Often, though, those creators are offered little recourse to monetize or benefit from their creations. Dance creators and musical talents, often young Black women, are literally crafting culture in real-time on TikTok and the pathways for them to benefit materially are very rare. Sure, it’s great when an originator gets called out by a Times reporter willing to do the work to trace the source, but what about the thousands of others being minted as a real voice on the platform every month?

It’s beyond time for the creators of The Culture to benefit from that culture. That’s why I find this UnitedMasters deal so interesting. Offering a direct pipeline to audiences without the attendant vulture-ism of the recording industry apparatus is really well aligned with a platform like TikTok, which encourages and enables ‘viral sounds’ with collaborative performances. Traditional deal structures are not well suited to capturing viral hype, which can rise and fall within weeks without additional fuel.

In terms of overall platforms, TikTok clearly has the highest concentration of incredible and un-tapped musical talent on the market. It’s just wild how many creators I see on there that are just flat out as good if not better than what you hear on the radio. Opera, rap, soul, folk, comedy, songwriting, it runs the gamut.

TikTok CEO Kevin Mayer came to the company after a long stint at Disney ending with a very successful Disney+ launch. Almost immediately, he was dropped into a political firestorm between China and the U.S. government. Parent company ByteDance must sell within 90 days, says Trump, or get shut down. Microsoft might buy them. Other tech companies are circling. This deal is a pretty crisp forward-looking signal that TikTok sees a way through this and is not waiting to innovate on one of the trickier components of this era of user generated businesses.

And on top of that, it charts a course for how user generated platforms should look to service creators and keep them in their universe. All UGC plays garner significant value from the creative energies of their users, but few have found a way to make that relationship reciprocal in a way that feels sustainable.

This UnitedMasters deal feels different, and the start of a larger trend that could pay big dividends to platforms and, finally, creators.


Source: Tech Crunch

Radio Flyer teams up with Tesla to launch a tyke-sized Tesla Model Y

If, like me, you can’t afford a full-sized Tesla because your life has been a series of bad investments (one day my early Fyre Festival backing will pay off) then Radio Flyer’s newest product might be just the thing for you. It’s a scaled down Model Y, designed for use by kids aged 18 months to four years old – but I can play pretend and yell ‘vroooommm’ just as well, if not better, than they can.

Dubbed ‘My First Model Y,’ this is a collaborative effort between the Tesla Design Studio and Radio Flyer’s product team. It’s a ride-on version, which is not true of the standard Model Y, and it includes a honking horn, as well as black induction wheels (an upgrade option on the real car) and a functional steering wheel, with a price point of $99. There’s only one trim level.

Unlike the first collaboration between Radio Flyer and Tesla, the Tesla Model S for Kids, this one doesn’t have a built-in battery – it requires kid power to function. That means a lot more affordability, and makes it suitable for much younger kids.

I might pick up one of these instead of just continuing to scrawl “Tesla” in block letters on the rear window of my 1998 Toyota Camry in grease pencil.


Source: Tech Crunch

India’s Reliance Retail acquires a majority stake in online pharmacy Nedmeds’ parent firm for $83.2M

Reliance Retail has bought a 60% stake in pharma marketplace Netmeds’ parent firm Vitalic for about $83.2 million, it said today, as India’s largest retail chain looks to expand into new categories and compete more closely with American e-commerce group Amazon.

Reliance Retail said the deal, which grants it a 100% ownership of Vitalic’s subsidiaries (Netmeds, Tresara, and Dadha Pharma), valued the parent firm at about $134 million. Netmeds, which connects customers to pharmacists and enables door step delivery of medicines, serves 5.7 million customers in more than 670 cities and towns and online.

Through Netmeds, which had raised about $99 million prior to today’s announcement, consumers get access to more than 70,000 prescription drugs for chronic and recurring ailments as well as enhanced lifestyle drugs and thousands of non-prescription goods for wellness, health and personal care.

Reliance Retail plans to expand its ownership in Vitalic to at least 80% by April 2024 and holds the rights to own 100% in the future.

“This investment is aligned with our commitment to provide digital access for everyone in India. The addition of Netmeds enhances Reliance Retail’s ability to provide good quality and affordable health care products and services, and also broadens its digital commerce proposition to include most daily essential needs of consumers,” said Isha Ambani, director of Reliance Retail, in a statement.

Reliance Retail, like its sister telecom venture Jio Platforms, is a subsidiary of Reliance Industries, the most valued firm in India. Reliance Industries is run by Mukesh Ambani, Asia’s richest man.

The announcement late Tuesday evening (local time) comes days after Amazon struck a deal with Netmeds, 1mg, PharmEasy and Medlife to sell medicines online in Bangalore. It was the first time Amazon had expanded into this category, it said. The coronavirus pandemic has accelerated the adoption of telemedicine and pharma marketplaces in the country, analysts said.

Netmeds is one of the largest online pharmacies in India (Image: Netmeds)

Online sales of medicine in India, for which New Delhi currently does not have clear regulations, presents yet another major opportunity for Reliance Retail, which has expanded its new e-commerce venture — called JioMart — to more than 200 cities and towns in the recent quarters.

Local media has reported that Reliance is also in talks to acquire online furniture store Urban Ladder, milk delivery startup MilkBasket and Bangalore-based lingerie maker Zivame. TechCrunch reported last week that Reliance Industries was also in talks to acquire the India business of TikTok.

“It is indeed a proud moment for ‘Netmeds’ to join Reliance family and work together to make quality healthcare affordable and accessible to every Indian. With the combined strength of the group’s digital, retail and tech platforms, we will strive to create more value for everyone in the ecosystem, while providing a superior Omni Channel experience to consumers,” said Pradeep Dadha, founder and chief executive of Netmeds, in a statement.


Source: Tech Crunch

Google Maps adds street-level details in select cities, more colorful imagery worldwide

Google Maps is getting a significant update that will bring more detail and granularity to its map, with changes that encompass both natural features and city-level details alike. For the former, Google says it’s leveraged computer vision techniques to analyze natural features from satellite imagery, then color-coded those features for easier visual reference. Meanwhile, select cities (including New York, San Francisco and London) will gain more detailed street information, like the location of sidewalks, crosswalks and pedestrian islands, for example.

These additions will help people better navigate their cities on foot or via alternative modes of solo transportation, like bikes and scooters, which some have opted for amid the pandemic. The supported cities will also show the accurate shape and width of a road to scale to offer a better sense of how wide or narrow a street is, in relation to its surroundings.

Image Credits: Google (before: left, after: right)

While the added granularity won’t include more accessibility features, like curb cuts for example, Google says that having the crosswalks detailed on the map will help in that area. The company also notes that Google Maps today displays wheelchair-accessible routes in transit and wheelchair attributes on business pages.

The updated city maps won’t show up immediately in the Google Maps app, we understand. Instead, Google says the new maps will roll out to NY, SF and London in the “coming months.” The vague time frame is due to the staged nature of the release — something that’s often necessary for larger apps. Google Maps reaches over a billion users worldwide, so changes can take time to scale.

The company notes that after the first three cities receive the update, it plans to roll out more detailed city maps to additional markets, including those outside the U.S.

Meanwhile, users both inside and outside big cities around the world will benefit from the changes to how natural features are presented in Google Maps.

Image Credits: Google

Google utilized a color-mapping technique to identify natural features from its satellite imagery, looking specifically at arid, icy, forested and mountainous regions. These features were then assigned a range of colors on the HSV color model. For instance, a dense forest will now appear as a dark green while patchier shrubs may appear as a lighter green. You’ll be able to differentiate between beaches and greenery, see where deserts begin and end, see how much land is covered by ice caps, see where snowcapped mountain peaks appear or view national park borders more easily, among other things.

These changes will reach all 220 countries and territories that Google Maps supports — over 100 million square kilometers of land, from bigger metros to rural areas and small towns.

Image Credits: Google

The update comes at a time when Google’s lead as everyone’s default mapping app is being challenged on iOS and Mac. While Apple Maps started out rough, a 2018 redesign and subsequent updates have made it a more worthy rival. Apple even took on Google’s Street View with its higher-resolution 3D feature, Look Around, which particularly targets big city users. More recently, Apple introduced a clever trick that allows you to raise your phone and scan the skyline to refine your location. And Apple is battling Google Maps’ explore and discovery features through its expanded, curated guides built with the help of partners. These updates have pushed Google to race ahead with improvements of its own in order to maintain its lead in maps.

Google says the new features and updates will roll out across Android, iOS and desktop in the months ahead.


Source: Tech Crunch

Datasembly’s real time pricing tool for consumer goods raises $10.3 million

Washington-based Datasembly aims to take the guesswork out of the pricing for consumer goods.

The company founded by Ben Reich and Dan Gallagher initially started as a project the two men developed after working at a retail analytics firm in the DC area.

What they observed while trying to collect information on pricing for goods and services for large consumer brands and national retailers was that there were so many things in the data collection that were flat out wrong, according to Reich.

“Companies are making multi-million dollar decisions on data that is incomplete… They’re trying to track the competition and understand their own place in the market,” said Reich. But without the proper tools, they just can’t, he said.

The problem becomes even more acute as retailers move to address consumers’ shifting tastes with regional, local, and hyperlocal specificity, Reich said. Datasembly boasts that its software can provide real-time data on availability and pricing to its customers anywhere in the country.

Datasembly solves the problem by scraping data on a massive scale, Reich said. The company, which went through the 500 Startups accelerator and had previously raised a small seed round had just closed on a $10.3 million series A round led by Craft Ventures with participation from Valor Siren Ventures.

The company counts three of the nation’s largest consumer packaged goods brands and two of the top five regional and national retailers among its customers already, according to a statement.

With the new money, Datasembly plans to expand its sales and marketing and product development efforts. As a result of the round, David Sacks, the founding COO of PayPal, founder of the messaging service Yammer, and co-founder fo Craft Ventures, will take a seat on the Datasembly board.

“For the last 20 years, retail industry data sets have remained largely unchanged. Now, Datasembly is leveraging technology to transform what companies can see, share, and do in a way that wasn’t practical or even possible before,” said Sacks, co-founder and general partner of Craft Ventures, in a statement. “Ben and the Datasembly team are changing the industry’s expectations of what’s possible when it comes to competitive pricing information. I can’t imagine a retail or CPG brand that wouldn’t want to take advantage of this data.”

 


Source: Tech Crunch

Pinterest announces first Black board member

Pinterest has appointed Andrea Wishom, President of trampoline company Skywalker Holdings and former Harpo Studios executive, to its board of directors. The appointment makes her Pinterest’s first Black board member and third female board member.

Pinterest added its first female board member in 2016, when it appointed Michelle Wilson, a former Amazon executive. Wilson was also the company’s first outside board member.

“I’ve spent my entire career inspired to take on challenges both creatively and culturally,” Wishom said in a statement. “I’m particularly interested in Pinterest’s expansion into content and media. I’m equally interested in Ben’s vision of having a new type of conversation between employees and the board itself. Part of meeting this moment is looking outside the expected and bringing different perspectives to the table. There are real challenges to address, and that responsibility is not lost on me. I’m committed to listening and sharing my perspective and providing guidance as Pinterest continues to make positive strides forward.”

Wishom’s appointment came following months of meetings with candidates, Pinterest CEO Ben Silbermann said in a statement. He said Wishom stood out for several reasons.

“She’s an expert in creating positive and inspirational content for global audiences, and a passionate advocate for building a company culture of respect, integrity, inclusion and support — areas in which we must innovate and improve,” Silbermann said. “Andrea has spent her career outside of Silicon Valley and has a vision for reimagining the board/employee relationship.”

This announcement comes a couple of days after Pinterest employees staged a virtual walkout to demand systemic change as it relates to gender and racial discrimination. The walkout was a direct response to former Pinterest employees speaking out against gender and racial discrimination. Last week, former Pinterest COO Françoise Brougher sued the company, alleging gender discrimination, retaliation and wrongful termination. Prior to that, Aerica Shimizu Banks and Ifeoma Ozoma also accused Pinterest of discrimination.

“These are not isolated cases,” workers wrote in a petition. “Instead, they are representative of an organizational culture that hurts all Pinterest workers, and keeps us from achieving our mission of bringing everyone the inspiration to create a life they love. We recognize that Pinterest has been a leader in diversity and inclusive hiring, with the diversity goals for new hires. It’s become clear that this is not enough, and that the diversity goals need to apply from the top down, not just the bottom up. Not only will diverse and inclusive leadership prevent discrimination and harassment among workers, it will help us build a product that is relevant on a global scale.”

Employees are demanding full transparency about promotion levels and retention, total compensation package transparency, the people within two layers of reporting to the CEO to be at least 25% women and 8% underrepresented employees, and a commitment to a diversity goal for the third layer reporting to the CEO.


Source: Tech Crunch

Lana has launched in Latin America to be the one-stop shop for gig workers financial needs

Lana, a new startup based in Madrid, is looking to be the next big thing in Latin American fintech.

Founded by a serial entrepreneur Pablo Muniz, whose last business was backed by one of Spain’s largest financial services institutions, BBVA; Lana is looking to be the all-in-one financial services provider for Latin America’s gig economy workers.

Muniz’s last company, Denizen, was designed to provide expats in foreign and domestic markets with the financial services they would need as they began their new lives in a different country. While the target customer for Lana may not be the same middle to upper-middle-class international traveler that he had previously hoped to serve, the challenges gig economy workers face in Latin America are much the same.

Muniz actually had two revelations from his work at Denizen. The first — he would never try to launch a fintech company in conjunction with a big bank. And the second was that fintechs or neobanks that focus on a very niche segment will be successful — so long as they can find the right niche.

The biggest niche that Muniz saw that was underserved was actually in the gig economy space in Latin America. “I knew several people who worked at gig economy companies and I knew that their businesses were booming and the industry was growing,” he said. “[But] I was concerned about the inequalities.”

Workers in gig economy marketplaces in Latin America often don’t have bank accounts and are paid through the apps on which they list their services in siloed wallets that are exclusive to that particular app. What Lana is hoping to do is become the wallet of wallets for all of the different companies on which laborers list their services. Frequently, drivers will work for Uber or Cabify and deliver food for Rappi. Those workers have wallets for each service.

(Photo by Cris Faga/Pacific Press/LightRocket via Getty Images)

Lana wants to unify all of those disparate wallets into a single account that would operate like a payment account. These accounts can be opened at local merchant shops and, once opened, workers will have access to a debit card that they can use at other locations.

The Lana service also has a bill pay feature that it’s rolling out to users, in the first evolution of the product into a marketplace for financial services that would appeal to gig workers, Muniz said.

“We want to become that account in which they receive funds,” he said. “We are still iterating the value proposition to gig economy companies.”

Working with companies like Cabify, and other, undisclosed companies, Lana has plans to roll out in Mexico, Chile, Peru, and eventually Colombia and Argentina.

Eventually, Lana hopes to move beyond basic banking services like deposits and payments and into credit services. Already hundreds of customers are using the company’s service, through the distribution partnership with Cabify, which ran the initial pilot to determine the viability of the company’s offering.

“The idea of creating Lana was initially tested as an internal project at Cabify,” Muniz wrote in an email. “Soon Cabify and some potential investors saw that Lana could have a greater impact as an independent company, being able to serve gig economy workers from any industry and decided to start over a new entrepreneurial project.”

Through those connections with Cabify, Lana was able to bring in other investors like the Silicon Valley-based investment firm Base 10.

“One of the things we’ve been interested in is in inclusion generally and in fintech specifically,” said Adeyemi Ajao, the firm’s co-founder. “We had gotten very close to investing in a couple of fintech companies in Latin America and that is because the opportunity is huge. There are several million people going from unbanked to banked in the region.”

Along with a few other investors Base 10 put in $12.5 million to finance the Lana as it looks to expand. It’s a market that has few real competitors. Nubank, Latin America’s biggest fintech company, is offering credit services across the continent, but most of their end users already have an established financial history.

“Most of their end users are not unbanked,” said Ajao. “With Lana it is truly gig workers… They can start by being a wallet of wallets and then give customers products that help them finance their cars or their scooters.”

The ultimate idea is to get workers paid faster and provide a window into their financial history that can give them more opportunities at other gig economy companies, said Ajao. “The vision would be that someone can pug in their financial information for services. If they’re working for Rappi and have never been an Uber driver and they want to be an Uber driver, Lana can use their financial history with Rappi to offer a loan on a car,” he said.

That financial history is completely inaccessible to a traditional bank, and those established financial services don’t care about the history built in wallets that they can’t control or track. “Today if you’ve been a gig worker and you go to a bank, that’s worth nothing,” said Ajao.


Source: Tech Crunch

Epic files an injunction against Apple over threat to revoke all developer access

After taking a stand against Apple’s hefty cut of the money developers make through the App Store, Fortnite maker Epic Games shows no signs of backing down. The company filed an injunction against Apple in the U.S. District Court for California’s Northern District on Monday after it received a letter notifying Epic that its developer accounts and access to developer tools would be cut off at the end of next week.

In the injunction, Epic accuses Apple of “retaliation” and reasserts its mission to disrupt what it views as Apple’s monopoly over its mobile software market. The company cites concerns that Apple’s actions against its developer access will damage its business beyond Fortnite, particularly its work on Unreal Engine, the prominent game engine it licenses to third party software makers.

“[Apple] told Epic that by August 28, Apple will cut off Epic’s access to all development tools necessary to create software for Apple’s platforms—including for the Unreal Engine Epic offers to third-party developers, which Apple has never claimed violated any Apple policy,” the injunction states.

“Not content simply to remove Fortnite from the App Store, Apple is attacking Epic’s entire business in unrelated areas. Epic is likely to succeed on the merits of its claims, but without an injunction, Epic will be irreparably harmed long before final judgment comes.”

Epic ran afoul of both Apple and Google’s policies last week when it added a discounted direct payment option into its apps, essentially creating a workaround for Fortnite players to make purchases in the game without an intermediary. Knowing that Apple would act quickly to pull Fortnite from the Apple Store for violating its rules, Epic had a PR campaign against the tech giant prepared, launching an antitrust suit and a Fortnite-themed spoof on Apple’s iconic 1984 commercial shortly after the news broke.

When reached by TechCrunch, Apple did not provide additional comment on the latest development, pointing us back to its prior statement that the company will “make every effort to work with Epic to resolve these violations” and to get Fortnite back in the App Store.

The full text of Epic’s injunction to block Apple’s actions is available here.


Source: Tech Crunch

Meet the startup that helped Microsoft build the world of Flight Simulator

Microsoft’s new Flight Simulator is a technological marvel that sets a new standard for the genre. But to recreate a world that feels real and alive and contains billions of buildings all in the right spots, Microsoft and Asobo Studios relied on the work of multiple partners.

One of those is the small Austrian startup blackshark.ai from Graz that, with a team of only about 50 people, recreated every city and town around the world with the help of AI and massive computing resources in the cloud.

Ahead of the launch of the new Flight Simulator, we sat down with Blackshark co-founder and CEO Michael Putz to talk about working with Microsoft and the company’s broader vision.

Image Credits: Microsoft

Blackshark is actually a spin-off of game studio Bongfish, the maker of World of Tanks: Frontline, Motocross Madness and the Stoked snowboarding game series. As Putz told me, it was actually Stoked that set the company on the way to what would become Blackshark.

“One of the first games we did in 2007 was a snowboarding game called Stoked and S Stoked Bigger Edition, which was one of the first games having a full 360-degree mountain where you could use a helicopter to fly around and drop out, land everywhere and go down,” he explained. “The mountain itself was procedurally constructed and described — and also the placement of obstacles of vegetation, of other snowboarders and small animals had been done procedurally. Then we went more into the racing, shooting, driving genre, but we still had this idea of positional placement and descriptions in the back of our minds.”

Bongfish returned to this idea when it worked on World of Tanks, simply because of how time-consuming it is to build such a huge map where every rock is placed by hand.

Based on this experience, Bongfish started building an in-house AI team. That team used a number of machine-learning techniques to build a system that could learn from how designers build maps and then, at some point, build its own AI-created maps. The team actually ended up using this for some of its projects before Microsoft came into the picture.

“By random chance, I met someone from Microsoft who was looking for a studio to help them out on the new Flight Simulator. The core idea of the new Flight Simulator simulator was to use Bing Maps as a playing field, as a map, as a background,” Putz explained.

But Bing Maps’ photogrammetry data only yielded exact 1:1 replicas of 400 cities — for the vast majority of the planet, though, that data doesn’t exist. Microsoft and Asobo Studios needed a system for building the rest.

This is where Blackshark comes in. For Flight Simulator, the studio reconstructed 1.5 billion buildings from 2D satellite images.

Now, while Putz says he met the Microsoft team by chance, there’s a bit more to this. Back in the day, there was a Bing Maps team in Graz, which developed the first cameras and 3D versions of Bing Maps. And while Google Maps won the market, Bing Maps actually beat Google with its 3D maps. Microsoft then launched a research center in Graz and when that closed, Amazon and others came in to snap up the local talent.

“So it was easy for us to fill positions like a Ph.D. in rooftop reconstruction,” Putz said. “I didn’t even know this existed, but this was exactly what we needed — and we found two of them.

“It’s easy to see why reconstructing a 3D building from a 2D map would be hard. Even figuring out a building’s exact outline isn’t easy.

Image Credits: Blackshark.ai

“What we do basically in Flight Simulators is we looking at areas, 2D areas and then finding out footprints of buildings, which is actually a computer vision task,” said Putz. “But if a building is obstructed by a shadow of a tree, we actually need machine learning because then it’s not clear anymore what is part of the building and what is not because of the overlap of the shadow — but then machine learning completes the remaining part of the building. That’s a super simple example.”

While Blackshark was able to rely on some other data, too, including photos, sensor data and existing map data, it has to make a determination about the height of the building and some of its characteristics based on very little information.

The obvious next problem is figuring out the height of a building. If there is existing GIS data, then that problem is easy to solve, but for most areas of the world, that data simply doesn’t exist or isn’t readily available. For those areas, the team takes the 2D image and looks for hints in the image, like shadows. To determine the height of a building based on a shadow, you need the time of day, though, and the Bing Maps images aren’t actually timestamped. For other use cases the company is working on, Blackshark has that and that makes things a lot easier. And that’s where machine learning comes in again.

Image Credits: Blackshark.ai

“Machine learning takes a slightly different road,” noted Putz. “It also looks at the shadow, we think — because it’s a black box, we don’t really know what it’s doing. But also, if you look at a flat rooftop, like a skyscraper versus a shopping mall. Both have mostly flat rooftops, but the rooftop furniture is different on a skyscraper than on a shopping mall. This helps the AI to learn when you label it the right way.”

And then, if the system knows that the average height of a shopping mall in a given area is usually three floors, it can work with that.

One thing Blackshark is very open about is that its system will make mistakes — and if you buy Flight Simulator, you will see that there are obvious mistakes in how some of the buildings are placed. Indeed, Putz told me that he believes one of the hardest challenges in the project was to convince the company’s development partners and Microsoft to let them use this approach.

“You’re talking 1.5 billion buildings. At these numbers, you cannot do traditional Q&A anymore. And the traditional finger-pointing in like a level of Halo or something where you say ‘this pixel is not good, fix it,’ does not really work if you develop on a statistical basis like you do with AI. So it might be that 20% of the buildings are off — and it actually is the case I guess in the Flight Simulator — but there’s no other way to tackle this challenge because outsourcing to hand-model 1.5 billion buildings is, just from a logistical level and also budget level, not doable.”

Over time, that system will also improve and since Microsoft streams a lot of the data to the game from Azure, users will surely see changes over time.

Image Credits: Blackshark.ai

Labeling, though, is still something the team has to do simply to train the model, and that’s actually an area where Blackshark has made a lot of progress, though Putz wouldn’t say too much about it because it’s part of the company’s secret sauce and one of the main reasons why it can do all of this with just about 50 people.

“Data labels had not been a priority for our partners,” he said. “And so we used our own live labeling to basically label the entire planet by two or three guys […] It puts a very powerful tool and user interface in the hands of the data analysts. And basically, if the data analyst wants to detect a ship, he tells the learning algorithm what the ship is and then he gets immediate output of detected ships in a sample image.”

From there, the analyst can then train the algorithm to get even better at detecting a specific object like a ship, in this example, or a mall in Flight Simulator. Other geospatial analysis companies tend to focus on specific niches, Putz also noted, while the company’s tools are agnostic to the type of content being analyzed.

Image Credits: Blackshark.ai

And that’s where Blackshark’s bigger vision comes in. Because while the company is now getting acclaim for its work with Microsoft, Blackshark also works with other companies around reconstructing city scenes for autonomous driving simulations, for example.

“Our bigger vision is a near-real-time digital twin of our planet, particularly the planet’s surface, which opens up a trillion use cases where traditional photogrammetry like a Google Earth or Apple Maps is doing is not helping because those are just simplified for photos clued on simple geometrical structures. For this we have our cycle where we have been extracting intelligence from aerial data, which might be 2D images, but it also could be 3Dpoint counts, which are already doing another project. And then we are visualizing the semantics.”

Those semantics, which describe the building in very precise detail, have one major advantage over photogrammetry: Shadow and light information is essentially baked into the images, making it hard to relight a scene realistically. Since Blackshark knows everything about that building it is constructing, it can then also place windows and lights in those buildings, which creates the surprisingly realistic night scenes in Flight Simulator.

Point clouds, which aren’t being used in Flight Simulator, are another area Blackshark is focusing on right now. Point clouds are very hard to read for humans, especially once you get very close. Blackshark uses its AI systems to analyze point clouds to find out how many stories a building has.

“The whole company was founded on the idea that we need to have a huge advantage in technology in order to get there, and especially coming from video games, where huge productions like in Assassin’s Creed or GTA are now hitting capacity limits by having thousands of people working on it, which is very hard to scale, very hard to manage over continents and into a timely delivered product. For us, it was clear that there need to be more automated or semi-automated steps in order to do that.”

And though Blackshark found its start in the gaming field — and while it is working on this with Microsoft and Asobo Studios — it’s actually not focused on gaming but instead on things like autonomous driving and geographical analysis. Putz noted that another good example for this is Unreal Engine, which started as a game engine and is now everywhere.

“For me, having been in games industry for a long time, it’s so encouraging to see, because when you develop games, you know how groundbreaking the technology is compared to other industries,” said Putz. “And when you look at simulators, from military simulators or industrial simulators, they always kind of look like shit compared to what we have in driving games. And the time has come that the game technologies are spreading out of the game stack and helping all those other industries. I think Blackshark is one of those examples for making this possible.”


Source: Tech Crunch