Boeing is selling three of its electric vertical takeoff and landing (eVTOL) subsidiaries to Archer Aviation, in addition to taking an undisclosed stake in the San Jose-based company.

Boeing is selling its air taxi startups to Archer Aviation

Archer will acquire the three subsidiaries, including Wisk Aero, for an undisclosed sum. Boeing will also take a stake in Archer.

Archer will acquire the three subsidiaries, including Wisk Aero, for an undisclosed sum. Boeing will also take a stake in Archer.

The subsidiares to be acquired by Archer include Wisk Aero, which has been developing an autonomous electric aircraft; SkyGrid, which is building air traffic management systems to be used by urban air taxis; and Insitu, which makes high-altitude drones used by the US Navy. As part of the deal, Boeing and Archer will share technology and Boeing will retain access to Wisk’s autonomous flight systems for its current and next-gen commercial and defense projects.

The deal likely allows Boeing to re-focus on its finances on its core commercial airplanes, while also bolstering Archer’s position in the race to be the first to put electric air taxis into commercial service. Boeing is currently facing an enormous $715 billion backlog, representing over 6,200 planes that its customers have ordered that the aerospace giant has yet to build. The company is also under intense regulatory scrutiny following several notable safety incidents, including a Boeing 737 Max that lost a chunk of fuselage mid-flight in 2024.

Meanwhile, Archer has said it is planning to launch pilot air taxi services in several markets, including New York, Texas, and Florida, before the end of the year. The company is also positioning itself as a military supplier, having recently unveiled a new eVTOL aircraft co-developed with Palmer Luckey’s defense tech company Anduril.

“This transaction is a win-win for Boeing and Archer,” Brian Yutko, Boeing vice president, Commercial Airplanes Product Development, said in a statement. “It allows Wisk, SkyGrid and Insitu to accelerate capability development and time to market while ensuring Boeing capitalizes on its investments in these technologies over the past two decades through continued development in our core businesses.”

Archer CEO Adam Goldstein called the deal “a watershed moment” that represents for Archer “the next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business.”

Wisk was formed in 2019 as a joint venture between Boeing and Kitty Hawk, the flying taxi startup bankrolled by Google cofounder Larry Page. Wisk has designed, built, and flown six generations of its eVTOL aircraft, amassing 1,700-plus flight tests. Notably, Wisk sued Archer in 2021 for allegedly stealing its trade secrets and infringing on its patents. The two sides settled the dispute in 2023, with Wisk agreeing to be the exclusive provider of autonomous flying technology to Archer.

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