One of the most established hyperloop firms is apparently closing its doors. According to Bloomberg News, Richard Branson’s Virgin Group originally funded Hyperloop One, which will cease operations on December 31.
It’s the most recent setback in the tech sector’s effort to realize an idea that Elon Musk first proposed in a white paper in 2013. It also follows Hyperloop One’s raising and spending of hundreds of millions of dollars since its inception in 2014.
The initial pitch for the hyperloop sounds like a zero-interest-rate fever dream: create long vacuum-sealed tubes for super-fast delivery of people and products. Aside from a few tech demonstrations and test songs, the concept has yet to take off.
Hyperloop One underwent many changes, including an unpleasant court battle between its co-founders. After Branson funded it in 2017, it was given the moniker Virgin Hyperloop One. However, after criticizing Saudi Arabia after the murder of Jamal Khashoggi in 2018, the Kingdom canceled a planned investment with the firm, and Branson stepped down as chairman.
After acquiring controlling ownership of the company, Dubai port operator DP World shifted its emphasis to cargo in early 2022, laying off half of its employees and eliminating the Virgin brand. According to Bloomberg, DP World will keep Hyperloop One’s intellectual property while selling off the remainder of its tangible assets, which include a test track west of Las Vegas and other gear.
