Kodiak AI will supply autonomous software for 75 trucks to DTL Transport by 2028. The shift from owning trucks to licensing technology aims to lower capital spending. The company, which has seen its share price drop 87% since its 2025 IPO, is moving toward a lighter financial structure to preserve cash.
Kodiak AI is reshaping its business as it prepares to enter the public highway market. The company has finalized a contract to provide its self-driving software for 75 trucks to DTL Transport. These trucks are expected to be deployed by 2028. This deal marks a critical change in how the company plans to make money.
Instead of buying and running its own fleet of trucks—a model where the company owns the hardware—Kodiak is moving to a model where it simply acts as a software provider. In this new setup, the transport company owns the trucks, and Kodiak charges a fee for every mile driven using its software. For investors, this is a major strategic pivot. Operating a physical fleet requires massive amounts of money spent on buying vehicles and maintenance. By moving to a software-focused approach, Kodiak aims to reduce its spending and focus on developing technology without the heavy financial burden of owning assets.
The urgency behind this move is visible in the company’s recent market performance. Since its public listing in September 2025, the company's share price has faced significant pressure, declining 87%. By shifting to an asset-light model, the company is attempting to lower the cash needed to grow, a strategy intended to preserve cash flow, which is crucial for technology firms in this sector.
While the specific financial terms of the contract were not disclosed, based on previous company data, the deployment of 75 trucks could generate approximately $11.2 million in annual revenue once they are fully operational. However, the path to profitability remains uncertain, and investors will need to watch whether this new model can scale effectively without the company needing to burn more cash on fleet maintenance.
Looking ahead, the company is also preparing for a significant operational milestone in December 2026, where it plans to operate trucks on public highways without any human safety drivers for freight services. For investors, the success of this upcoming pilot and the ability to meet the 2028 delivery target for the 75-truck fleet will be key indicators of whether this transition to a software-licensing business model can deliver long-term value.