How Archer Aviation Went From Lawsuit Target to Owner of Its Former Rival Wisk Aero

On August 10, 2026, Archer Aviation announced it would acquire three Boeing subsidiaries — Wisk Aero, Insitu, and SkyGrid — in an all-stock transaction that gave Boeing roughly a 16.5% equity stake in Archer . The deal was the culmination of a five-year arc that began with a bitter trade secret lawsuit and ended with Archer absorbing its former rival and becoming a vertically integrated autonomous aerospace and defense company.

The 2021 Trade Secret Lawsuit

On August 10, 2021, Wisk Aero sued Archer Aviation in federal court, alleging that Archer had stolen Wisk's autonomous flight trade secrets through a former Wisk employee who joined Archer . The lawsuit created an intense rivalry between the two electric vertical takeoff and landing (eVTOL) developers and set the stage for years of legal conflict.

The 2023 Settlement: From Adversaries to Partners

On August 10, 2023 — exactly two years after the suit was filed — Archer, Boeing, and Wisk announced a settlement and technology partnership . The unusual terms included:

• Archer issued Wisk a minority equity stake (reported as shares worth roughly $22.5 million) .
• Archer granted Wisk a technology license to its intellectual property .
• The two companies agreed to collaborate on autonomous flight technology rather than litigate .
• Archer designated Wisk as its exclusive provider of autonomy technology for future variants of Archer's aircraft .

This settlement effectively turned litigation adversaries into development partners and set the stage for the deeper integration that followed.

Wisk Aero's Origin: From Kitty Hawk's Cora to Boeing Subsidiary

Wisk Aero was founded in 2019 as a joint venture between Boeing and Google co-founder Larry Page's Kitty Hawk Corporation, carrying forward Kitty Hawk's Cora program — an autonomous all-electric eVTOL prototype . The Cora program had roots in Zee Aero, a secretive eVTOL startup backed by Page since 2010, which merged with Kitty Hawk in 2017 . In May 2023 (shortly before the Archer settlement), Boeing acquired Kitty Hawk's remaining shares, making Wisk a wholly owned Boeing subsidiary .

Archer's Defense Sector Expansion

Archer concurrently built a major defense business, positioning itself as a defense contractor as well as an air taxi developer:

• December 2024: Archer announced an exclusive strategic partnership with Anduril Industries to co-develop a next-generation hybrid VTOL military aircraft, launched as the Archer Defense program, and simultaneously raised $430 million from investors including Stellantis, United Airlines, and Wellington Management .
• February 2025: Archer raised an additional $300 million from institutional investors including BlackRock and Wellington Management, bringing total funding to approximately $3.36 billion, explicitly to expand defense-focused development .
• Together, these two rounds totaled $730 million raised to support the defense pivot .

Midnight Aircraft and the White House eVTOL Integration Pilot Program

• Archer was selected to participate in the White House's eVTOL Integration Pilot Program (eIPP), a government initiative to integrate electric air taxis into the U.S. national airspace .
• On July 30, 2026, Archer's all-electric Midnight aircraft completed a piloted round-trip flight between Salinas Municipal Airport and Monterey Regional Airport in California, with each leg covering about 20 miles and taking approximately nine minutes .
• Archer plans to begin commercial operations in 2026 under the eIPP, ahead of serving as the Official Air Taxi Provider for the LA28 Olympic Games .

The August 2026 Acquisition: Archer Buys Its Former Rival

On August 10, 2026 — exactly three years after the settlement, and five years after the original lawsuit — Archer announced it would acquire three Boeing subsidiaries in an all-stock transaction :

• Wisk Aero — autonomous eVTOL developer (Archer's former rival)
• Insitu — uncrewed aircraft systems and drone manufacturer
• SkyGrid — airspace management software platform

Key deal terms:

Aspect	Detail
Consideration	All-stock; Boeing receives roughly a 16.5% equity stake in Archer (some sources cite ~19.75% on a pre-deal basis)
Boeing's commitment	$55 million investment in Archer; board observer rights
Archer gains	Over $200 million in annual revenue from existing defense contracts, plus autonomous flight, drone, and airspace tech
Boeing gains	Ongoing technology access and a significant ownership position in Archer

Putting It All Together

The 2021 lawsuit, the 2023 settlement (which turned adversaries into collaborators), and Archer's growing military ambitions led to the August 2026 deal where Archer absorbed its former rival Wisk along with Insitu and SkyGrid. Boeing, having made Wisk a wholly owned subsidiary in 2023, exited direct eVTOL development in exchange for a sizable equity stake in Archer . The transaction positions Archer as a vertically integrated autonomous aerospace and defense platform with existing revenue streams from Insitu's drone business, a partnership with Anduril for military VTOL aircraft, and Midnight on track for commercial eVTOL operations under the White House's eIPP program.