Tech

AMAZON BUYS KIVA SYSTEMS FOR $775 MILLION

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Amazon is spending $775 million in cash to buy Kiva Systems, the company that specializes in developing robots for warehouses.

In a release announcing the deal, Dave Clark, Amazon's VP of fulfillment said, "Amazon has long used automation in its fulfillment centers, and Kiva’s technology is another way to improve productivity by bringing the products directly to employees to pick, pack and stow."

The Kiva robots buzz around warehouses and deliver packages and other materials to workers. They're controlled by software and, in theory, make distribution centers run more efficiently than humans.

In other words, these robots will probably end up replacing some humans.

Check out a video of the robots in action below:

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Prior to joining Business Insider in 2011, Matt covered video games and technology at VentureBeat. He also covered markets and stocks for Reuters. Matt is a graduate of the University of North Carolina at Chapel Hill, where he studied mathematics, physics and business journalism. This page is from an old version of Business Insider. To see Matt's recent articles, visit his updated author page here.