After the greetings, Daryl sat back comfortably in his chair.
“As the name suggests, CarOS is not just a company developing autonomous driving.”
When I first heard the name CarOS, I thought of a carriage, but the spelling is CarOS, not Caros.
Was it named ambiguously like this on purpose?
“For over a century, cars have been powered by internal combustion engines running on petrol. However, this is likely to change in the future.”
Companies and governments worldwide are already moving to replace internal combustion engine cars, and at this rate, the end of internal combustion engine cars is approaching faster than expected.
He then asked a question,
“So, what do you think the next-generation cars will be?”
I replied,
“Electric vehicles, I suppose.”
Next-generation cars are divided into two: electric vehicles (EV) and fuel cell electric vehicles (FCEV).
Both types move the motor with electricity, but electric cars operate using electricity stored in batteries, while fuel cell vehicles operate using electricity generated by the reaction between hydrogen and oxygen inside.
Electric cars operate with just batteries and motors, without the need for complex engines and transmissions. It’s not an exaggeration to say that the structure is so simple that it could be likened to a large RC car.
The reason why startups rather than traditional car companies have made a mark in the electric car market is precisely because of this.
Until a few years ago, electric and fuel cell cars were in competition.
In fact, electric cars have inherent weaknesses. Since they are powered by electricity stored in batteries, they have limited range and long charging times. Simply increasing the battery capacity would make the body heavier and the price higher.
Despite having far fewer components than internal combustion cars, the reason electric cars are heavy and expensive is due to this fact.
While Hyundai chose to focus on developing fuel cell vehicles, expecting that electric vehicles lacked market competitiveness, it was, in fact, the victory of electric cars.
In the United States, Nikola radically improved the once considered weaknesses of electric cars, such as range and charging time, by building a huge factory in the middle of the desert to lower battery prices.
With the support of the Chinese government aiming to solve environmental issues and lead the future car market, BID from China has risen to become the world’s largest electric car company.
As the electric car industry grows, government support around the world has also shifted towards electric vehicles.
Ultimately, all car companies dived into electric car development, and Eunsung Motors, although late in transitioning to electric cars, was already significantly behind in terms of technology.
Daryl nodded.
“The recent cars being released are equipped with various electronic devices – navigation, rear cameras, radio, DMB, air conditioning, seat warmers, black boxes, and so on.”
It’s not just about additional gadgets.
In the past, stepping on the accelerator would engage a mechanical device to open the throttle and inject air into the engine, but now an electronic control unit (ECU) handles this process.
Daryl gleamed with her eyes.
“CarOS’s goal is to develop artificial intelligence for cars that can control everything, including autonomous driving.”
Although already familiar with the content through the proposal, hearing it directly from the CEO made a significant impact.
Artificial intelligence for cars…
Hyunju asked a question.
“Other companies have already commercialized autonomous driving technology. What is the status of CarOS’s technology?”
Autonomous driving can be broadly divided into five levels: driver assistance, partial autonomy, conditional autonomy, high-level autonomy, and full autonomy. Up to level 3, which is conditional autonomy, the development has been completed and implemented in production cars, while levels 4 and 5 are still under research.
However, CarOS has not produced any results so far.
Daryl smirked.
“Those are just programs that operate based on predetermined algorithms. They are far from true autonomous driving.”
“What then is true autonomous driving?” I asked.
Daryl responded as if he had been waiting for my question.
“It’s artificial intelligence that drives like a human, thinking and reacting. It stays within designated lanes, moves according to traffic flow, checks signals before starting, and stops when it detects obstacles.”
All of these operate according to set rules. The more sophisticated the rules, the lower the chances of malfunctions.
In fact, the autonomous vehicles developed by Gruble have passed road tests in major cities multiple times.
However…
There are instances where traffic police directly control signals at congested intersections. The traffic police signals take priority over traffic lights. But can autonomous vehicles really navigate following the police gestures while ignoring the traffic lights?
Can they judge to stop driving upon hearing sirens from behind and automatically clear the way?
Can they recognize drunk driving from the wobbling of the car in front and take evasive action?
Can they perfectly handle the various other variables that arise during driving?
I could understand why CarOS hadn’t achieved any significant results so far.
What Eunseong wanted was the development of algorithms necessary for autonomous driving. He wanted machines to follow or stop according to rules.
But Daryl’s goal was completely different. He wanted to develop artificial intelligence that thinks like a human and drives a car, not just simple algorithms.
So, compared to other companies that steadily advanced autonomous driving through step-by-step upgrades, it might seem that their technological development was slower.
“Our artificial intelligence system we’re developing is a perfect operating system that controls all aspects of a vehicle, not only autonomous driving but also providing road guidance, content for passengers, automatic parking, efficient battery management, etc.”
When Taekgyu heard the translation, he looked surprised.
“Wait. That’s completely astonishing.”
“What do you mean?”
“An AI-equipped machine featured in Cyber Formula.”
“······.”
When was that animation made?
At least it’s not for our generation. Those who watched that show would be in their 30s by now, wouldn’t they?
Thinking like that, Daryl turned his head, pretending to clear his throat.
“Ahem!”
“······.”
Is there something bothering you? You’re not thinking of developing AI for cars after watching that anime, are you?
Daryl adjusted his expression and said, “As you know, we are looking for investors to purchase shares in Eunsung Motors. Currently, it is becoming increasingly difficult to continue development under Eunsung Motors.”
Initially, CarOS was established as a joint venture.
AMZ had a free-spirited atmosphere as an IT company, investing but not interfering in operations. Therefore, Daryl could build his own team and focus on technological development as he wished.
However, things changed when AMZ sold its shares and became a subsidiary of Eunsung Motors. The biggest issue was Hanchan-young’s presence.
He saw autonomous driving development as a stepping stone for his succession.
So, rather than developing AI with a long-term vision, he wanted programs that could be immediately utilized.
Because their goals were different, clashes were inevitable.
Eventually, Hanchan-young left CarOS, leading to its acquisition.
I was lost in thought.
What if he could create an operating system that controls everything in a car? So humans would no longer need to hold the steering wheel?
Cars are essential in modern life. No matter how times change, the importance of cars will remain significant.
As it continues to be a growing field, leading global automobile and IT companies are diving into future car development.
I imagined the sight of driverless cars cruising the roads. Every car moving along the most efficient route, autonomously seeking out the nearest charging station when low on battery, and stopping at a designated spot when called by the owner.
Even if we can easily enjoy lifelike VR experiences or get tastier pizzas delivered faster, the world wouldn’t change much. But this is different. If AI that controls cars is developed, its impact will surpass imagination.
The only issue is the possibility of success, and I’ve foreseen success twice already. If we succeed in development, what will be the corporate value?
Decon is an unlisted company with a market cap of over $10 billion, or 11 trillion Korean won. This is just the minimum amount. Considering the size of the global automotive market, 11 trillion won might not be enough; it could easily be 110 trillion.
Suddenly, a strong shiver ran through my body. This is a once-in-a-lifetime opportunity. If successful, we could achieve more success than all other companies I’ve invested in combined.
I asked Daryl, “What’s the current ownership structure of CarOS?”
“AMZ holds 86 percent, and I and the developers hold 14 percent.”
In Silicon Valley, the value of IT professionals surpasses imagination, with salaries ranging from hundreds of millions to tens of billions of Korean won. Unlike large corporations, smaller companies may offer stock options instead of high salaries.
Originally, 7.5 percent of the total shares were allocated to employees in stock options. When AMZ sold its stake, Daryl and employees collectively purchased an additional 6.5 percent.
Currently, Daryl owns 6.4 percent, while other employees hold 7.6 percent. If AMZ’s 86 percent stake is acquired, all problems would be solved.
Taekgyu might not immediately do a favor for AMZ. But how will they react when they realize the company they sold for a mere $100 million now holds a value exceeding $10 billion?
It doesn’t end there.
CarOS developing is the core technology of future cars. If we take the lead in that technology, no car company will be able to escape its influence.
Just the fact that CarOS was becoming the next DecaCorp made it seem like we could see what would happen in the future.
I thought of my father who had lost technology to Eunsung Motors and passed away. But this time, I found myself in a position to take technology from Eunsung Motors.
Of course, unlike those guys, I’m paying a fair price to acquire it.
So there’s really no need to feel sorry at all.
By the way, I don’t intend to pay the price that Eunsung Motors is asking. The urgency is on their side, not ours.
From Eunsung Motors’ perspective, rather than selling patents and core technologies at a bargain price, they would prefer to lower the amount but sell everything as is, so there should be room for negotiation.
I’ve left it to Hyunjoo noona so far, but this time, I decided to speak up myself.
Looking at Daryl, I said,
“We will invest in CarOS.”
