A pair of major flying-taxi companies who've been locked in a legal battle for 2 years have buried the hatchet and agreed to work together

• Wisk Aero accused Archer Aviation of stealing trade secrets in a 2021 lawsuit.
• The companies announced Thursday they've reached a settlement and will work together.

Wisk Aero and Archer Aviation, two of the most prominent eVTOL companies, announced Thursday that they've agreed to work together after settling a legal dispute.

Both companies are working on electric aircraft which can takeoff and land vertically, but also have wings so they fly more like planes than helicopters. They're commonly known as flying taxis, because they're designed for smaller distances.

United Airlines has already ordered $1 billion worth of Archer's Midnight eVTOL, while Wisk is owned by Boeing, which has invested $450 million.

As part of the companies' collaboration, Boeing has now also agreed to invest an undisclosed amount into Archer, as part of a $215 million funding round.

And Wisk will now be Archer's exclusive provider of autonomous-flying technology.

"This strategic relationship will leverage each company's respective strengths and competencies with the goal of accelerating the commercialization of autonomous flight," Archer said in a press release.

Archer added that the collaboration could potentially save it hundreds of millions of dollars.

Wisk and Archer had been locked in a legal dispute since 2021, after the former accused the latter of stealing trade secrets.

In court documents reviewed by Insider, Wisk accused its rival of "a brazen theft of its intellectual property and confidential information."

After Archer hired ten Wisk engineers, it produced an aircraft with "a striking resemblance" to a Wisk patent, the lawsuit alleges.

Then Wisk hired an analyst for a forensic investigation which found two of those engineers downloaded thousands of files shortly before leaving for Archer, according to the lawsuit.

But now, two years later, an undisclosed settlement has been reached while the two companies will quash the hostility and work together.

Archer also announced Thursday that the Federal Administration Aviation has given approval for its Midnight aircraft to begin flight tests.

It's aiming for FAA certification and commercial operations in 2025.