Self-driving technology startup Wayve raises $1.2 billion from Nvidia, Uber and three automakers

Wayve’s self-driving technology attracted a diverse group of investors in the company’s latest $1.2 billion funding round, including three automakers, major enterprise and enterprise companies, and returning backers such as Microsoft, Nvidia and Uber. The total increase could reach $1.5 billion thanks to another $300 million from Uber contingent on the deployment of robotaxis, starting in London.

Everyone seems to want a piece of the UK startup, which is now valued at $8.6 billion. The funding round demonstrates the eagerness of big tech companies, legacy automakers and the investor community to capitalize on the booming automated driving industry.

Wayve offers what founder and CEO Alex Kendall calls a “paradoxical” option in automated driving — one that is contradictory in its approach to the technology and its business model, he told TechCrunch in an interview on Tuesday.

“I think the technology chessboard is about where different companies have invested in technology strategy, and now the business chessboard is sorted out,” Kendall said. “We took a very contrarian view on the technology side. We were the first to build end-to-end deep learning for autonomous driving, and we pioneered that approach. Now, when it comes to this phase of transition to commercialization, we also take a contrarian business model approach.”

Wayve, which launched in 2017, uses a self-paced learning approach in its software. The company has developed a software layer using a comprehensive neural network that does not require high-definition maps and only uses data to teach the car how to drive.

This data-driven educational approach is supported by two products: the “seeing eye” assisted driving system, and the “naked eye” fully automated driving system that can be applied to robotaxis or consumer vehicles that can handle all the driving in certain environments.

The company’s pitch to customers is the agnostic nature of its technology, which does not rely on specific sensors or maps. Automated driving software captures data from any sensors on the vehicle and guides the system’s driving decisions. Wayve’s software can also run on any chip its OEM partners already have in their vehicles.

However, it’s worth noting that Nvidia, also a backer, has had a close development relationship with Wayve since 2018. The startup’s Gen 3 platform, which was unveiled last fall, uses an in-car autonomous vehicle development kit called Nvidia Drive AGX Thor. The Gen 3 platform will allow Wayve to offer advanced driving assistance systems and Level 4 features — or completely driverless — that will work on city streets and highways.

The company’s technology is somewhat similar to how Tesla has approached automated driving, although there are key differences in their business models.

Wayve does not want to be the operator of a hands-free driving assistance system or a fully automated driving system. (By comparison, Waymo is largely the operator of its own robotaxis, though it has partners.) Wayve also doesn’t want to build vehicles with its own software, as Tesla does. Instead, it sells “embodied AI” to automakers and other technology companies like Uber.

Kendall argues that this is the business model with the largest addressable market, but says it’s only viable because Wayve has built AI that generalizes across different devices and environments.

“If you build an autonomy package for a sensor or a computational architecture, [or] “If you build it where it requires mapping or something like that, you can’t take the third option,” Kendall said, referring to the business model his company chose.

Nissan and Uber are both Wayve customers. Nissan said the startup’s self-driving software will be used to enhance the advanced driver assistance system in its cars starting in 2027. Meanwhile, later this year, Uber plans to launch commercial trials in vehicles equipped with the Wayve software.

It appears that its relationship with Uber will extend beyond the pilot program. Uber CEO Dara Khosrowshahi’s statement on Tuesday hints at the scope of its partnership with and investment in Wayve.

“We are very proud to continue to deepen our partnership with Wayve, with plans to deploy together in more than 10 markets around the world. Wayve’s robust, end-to-end approach is specifically designed for scale, safety and effectiveness, and we are excited to work with them across multiple OEMs and geographies, which we will share more about soon.”

The round was led by Eclipse, Balderton and SoftBank Vision Fund 2. New investors include the Ontario Teachers’ Pension Plan, Baillie Gifford, British Business Bank, Icehouse Ventures, Schroders Capital and other global institutional investors, the company said.

Global automakers such as Mercedes-Benz, Nissan and Stellantis also participated – all of which plan to use Wayve’s technology. Nvidia, which participated in Wayve’s $1.05 billion Series C round, said last year that it was evaluating a $500 million strategic investment in Wayve’s next raise. While Nvidia has already participated, Kendall has not revealed the exact amount of its investment or whether it is close to the $500 million figure.

Updated to include more information about Uber’s $300 million in additional financing.