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How iRobot Strayed from Its Original Path

How iRobot Strayed from Its Original Path

Bitget-RWA2025/12/15 09:21
By:Bitget-RWA

The Rise and Fall of iRobot: An American Tech Saga

Few stories capture the spirit of American innovation quite like iRobot’s journey. Established in 1990 in Bedford, Massachusetts by MIT robotics expert Rodney Brooks and his students Colin Angle and Helen Greiner, iRobot began as a bold experiment in artificial intelligence. After more than three decades, the company has now filed for Chapter 11 bankruptcy, marking the end of an era that saw its technology move from research labs to millions of homes—and ultimately, into the hands of its Chinese supplier.

From MIT Labs to Living Rooms

Rodney Brooks, a pioneering figure in robotics and the founding director of MIT’s Computer Science and Artificial Intelligence Lab, spent the 1980s studying insects to understand how simple mechanisms could create complex actions. These insights led to the formation of iRobot, which would go on to sell over 50 million robots worldwide. The introduction of the Roomba in 2002 transformed the company, turning the device into a household name, a source of internet memes, and even an unconventional ride for cats.

Rapid Growth and Ambitious Investments

Financial success soon followed. iRobot attracted $38 million in funding—including backing from The Carlyle Group—before its 2005 IPO, which raised $103.2 million. By 2015, the company was thriving enough to launch its own venture capital arm, aiming to invest between $100,000 and $2 million in up to ten early-stage robotics startups each year. This move signaled iRobot’s arrival as a major player, ready to nurture the next wave of robotics innovation.

The Amazon Acquisition That Wasn’t

In 2022, Amazon announced plans to acquire iRobot for $1.7 billion, which would have ranked among the tech giant’s largest purchases. CEO Colin Angle expressed optimism about joining Amazon, highlighting the opportunity to continue developing innovative products within a larger ecosystem. For a moment, it seemed like a storybook ending for the MIT spinoff.

However, European regulators intervened, concerned that Amazon’s control could limit competition by restricting access to its marketplace. Facing the likelihood of regulatory rejection, both companies abandoned the deal in January 2024. Amazon paid a $94 million termination fee, Angle stepped down, iRobot’s stock plummeted, and nearly a third of its workforce was laid off.

Decline and Restructuring

The company’s fortunes continued to deteriorate. Since 2021, iRobot’s earnings had been shrinking due to supply chain disruptions and fierce competition from lower-priced Chinese robot vacuums. Although The Carlyle Group provided a $200 million loan in 2023, it only delayed the inevitable. Last month, Carlyle sold off the loan, likely at a loss.

A New Chapter Under Chinese Control

The iRobot of old is now gone. Shenzhen PICEA Robotics, previously iRobot’s main supplier and creditor, will assume control of the reorganized business. According to a recent statement, iRobot’s restructuring plan will allow the company to continue normal operations, with no expected interruptions to its app, customer services, global partnerships, supply chain, or product support.

The company also pledged to honor its obligations to employees and ensure timely payments to vendors and creditors throughout the bankruptcy proceedings.

What’s Next for iRobot Customers?

For now, iRobot insists that customers will not experience any changes. “Today’s announcement does not affect our operations or our commitment to serving customers, which remains our highest priority,” spokesperson Michèle Szynal told TechCrunch. “We are dedicated to delivering smart home solutions that enhance everyday life. Our products will remain unchanged.”

While iRobot has promised ongoing support for existing products during the restructuring, the company also acknowledges the uncertainties inherent in bankruptcy—such as the risk of suppliers withdrawing or the process not going as planned.

The Future of Roomba Devices

As reported by The Verge, even if iRobot were to cease operations and its cloud services were discontinued, Roomba vacuums would still function using their physical controls. Owners could continue to start cleaning cycles or send the device back to its charging station manually.

However, users would lose the advanced features that make Roombas feel cutting-edge, such as app-based scheduling, room-specific cleaning, and voice commands through Alexa.

Update: This article has been revised to include a statement from iRobot.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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