Chinese driver-assist startup announces $100 million in funding, touts ‘deep cooperation’ with Nvidia

BEIJING — Deeproute.ai, a Chinese language startup growing autonomous driving techniques, introduced a $100 million funding spherical Tuesday from an undisclosed automaker, whereas emphasizing shut ties with chipmaker Nvidia.

Pitchbook knowledge confirmed Chinese language firm Nice Wall Motor led the funding.

It has been troublesome to acquire financing, particularly from a non-government supply, Maxwell Zhou, CEO of DeepRoute.ai, instructed reporters Tuesday in Mandarin, translated by CNBC.

The startup can be in “deep cooperation” with Nvidia, Zhou stated, noting “in-depth discussions” with the chipmaker’s CEO Jensen Huang.

Zhou spoke on “Commercializing mass-produced autonomous driving options” at Nvidia’s intently watched GTC AI convention in March.

Shenzhen-based Deeproute stated it makes use of Nvidia’s Orin chip for its present driver-assist system.

The startup added it’s a part of the primary batch of corporations in China to acquire Nvidia’s newer Thor chip for vehicles and can launch a brand new system utilizing it subsequent yr that may use extra visible cues to handle extra advanced driving eventualities.

“A lot of corporations in China are competing on autonomous driving. It’s truly a contest over AI,” Zhou stated.

By way of AI computing energy, Deeproute stated it has its personal capability, and may faucet Alibaba‘s if wanted. The e-commerce and cloud computing firm led a $300 million funding spherical in Deeproute in 2021, giving it a valuation of greater than $1 billion simply two years after it was based in 2019, in keeping with the startup.

The U.S. in October 2022 imposed sweeping restrictions on China’s capability to entry essentially the most superior semiconductors from Nvidia and different American corporations. Automotive chips do not presently fall in that class.

Nvidia is scheduled to launch earnings for the quarter ended Oct. 27 on Nov. 20. For the quarter ended July 28, the chipmaker stated its automotive section noticed income rise by 37% year-on-year to $345 million.

Deeproute presently works with Chinese language automakers promoting in China. The corporate expects a minimum of three automotive fashions utilizing its driver-assist system will hit the street this yr.

Already, Deeproute’s techniques are working in additional than 20,000 vehicles on the street, Zhou stated. He expects that quantity to extend, probably by ten-fold, subsequent yr.

The startup, which has an workplace in California, stated it’s trying to work with overseas automakers and plans to take part in Japan’s auto present subsequent yr.

Deeproute has centered on utilizing synthetic intelligence to routinely drive vehicles, with out counting on “high-definition maps.” That enables a car to make use of driver help tech on roads the place these technical parameters have not been created.

It is a pattern automotive tech corporations equivalent to Xpeng and Huawei are pursuing — and Tesla‘s technique for growing autonomous driving. Elon Musk’s automotive firm has centered on utilizing cameras and synthetic intelligence to steer the car, with out heavy reliance on HD maps.

These maps, utilized by autonomous driving corporations equivalent to Alphabet’s Waymo, give a automotive an in depth image of metropolis streets. However they must be created earlier than a automotive runs on the street, a course of that may drive up prices.

Zhou stated the corporate could be very anticipating Tesla’s driver-assist product — referred to as “Full Self-Driving” — to enter China. His reasoning is that Tesla’s product will encourage extra customers to grow to be extra fascinated with driver-assist options — and enhance Deeproute’s prominence within the sector.

When requested about IPO plans, Zhou stated the startup would preserve to its personal improvement tempo, nevertheless it welcomed the newest public choices of different business gamers.

Chinese language autonomous driving software program developer WeRide went public on the Nasdaq final month, whereas robotaxi operator Pony.ai has filed for a U.S. IPO.

Corporations in China’s autos business are more and more taking a look at driver-assist tech as a solution to keep aggressive out there.

Pony.ai introduced Saturday an settlement to cooperate on mass-development of totally autonomous robotaxis with state-owned Beijing Automotive Group’s new power car subsidiary.

Tencent on Monday introduced it prolonged its strategic cooperation with German autos provider Bosch to work on autonomous driving and tech-enabled cockpits. The 2 corporations first agreed to strategic cooperation in 2020.

Clarification: This story has been up to date to replicate that Deeproute was a part of the primary batch of corporations in China to acquire Nvidia’s new Thor chip for vehicles.