The new fund is called Amazon Industrial Innovation Fund, reports Report.
The company said the fund would invest in «companies that think beyond existing ways of delivering goods and supply chain practices to present solutions for incrementally increasing delivery speeds and further improving employee working conditions in logistics».
Amazon has already announced the fund's first five investments, which predominantly focus on developing industrial robots and wearable devices.
Among the companies that will receive funds are Modjoul (makes wearable devices for warehouse security), Vimaan (develops artificial intelligence for warehouse management), Agility Robotics, Bionic Hive and Mantis Robotics (all three create industrial robots).
Amazon Industrial Innovation Fund is not the company's first venture capital fund. It has also previously launched the $2 billion Climate Pledge Fund, which invests in green technology, the $200 million Alexa Fund, which focuses on voice technology, and the $250 million Amazon SMBHAV Venture Fund, which invests in startups in India.
Amazon shares are down 0.2 per cent in trading on Thursday.