Israeli startup Nexar and U.S.-based Nauto have announced a definitive agreement to merge in a stock deal, forming a global physical AI company focused on real-world driving systems. The combined platform will use billions of miles of data to train autonomous and fleet intelligence models. The financial terms were not disclosed. The merged company will be led by Zach Greenberger, current CEO of Nexar, while Stefan Heck, founder and CEO of Nauto, will serve as chairman. The combined data engine will draw on more than 300 million miles of real-world driving data collected every month across more than 50 countries, alongside a cumulative dataset exceeding 10 billion miles. Nexar, founded in 2015, has raised approximately $150 million, including a $52 million Series C in 2020 and a $53 million Series D in late 2021. Nauto, based in Sunnyvale, California, has total funding of approximately $175 million, with its largest round being a $159 million Series B in 2017.