Boeing announced an agreement Monday to divest its air taxi and two other technology ventures to Archer Aviation for a stake in the startup.
The transaction shifts to Archer Boeing's Wisk autonomous aircraft venture and SkyGrid and Insitu businesses for the equity and warrants for additional potential stock purchases in California-based Archer.
Shares of Archer surged on the announcement, which caps Boeing's potential stake at just under 20 percent.
Archer aspires to build a fleet of air taxis that could potentially jet New York City travelers to airports in 15 minutes or less, avoiding traffic jams.
Archer is also targeting the 2028 Los Angeles Olympics as a showcase opportunity for the technology, announcing in November 2025 the $126 million purchase of Hawthorne Airport as a hub in the city.
Combining the companies' technologies will allow Archer to bring new products to market more quickly, the companies said in a joint statement.
"This is a watershed moment for Archer and the future of physical AI in aerospace and defense," said Archer Chief Executive Adam Goldstein.
"This is the next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business."
The transaction includes a "collaboration and technology-sharing agreement" that retains Boeing's access to Wisk technology for current and next-generation commercial and defense aircraft, the press release said.
In its May earnings release, Archer said it had completed the "phase three" of the Federal Aviation Administration's four-phase certification process for its Midnight air taxi vehicle. The company is slated to report results later Monday.
Shares of Archer surged 12.6 percent in midday trading, while Boeing rose 0.5 percent.
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