Self-driving tech startup Wayve raises $1.2B 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, top firms and institutions, and returning backers Microsoft, Nvidia, and Uber. The total amount raised could reach $1.5 billion, thanks to another $300 million in historic support from Uber based on the use of robotaxis, starting in London.

Everyone, it seems, wants a piece of the UK startup, which is now valued at $8.6 billion. The funding round reflects the eagerness among Big Tech, the classic car, and investor community to capitalize on the growing autonomous driving industry.

Wayve offers an alternative to other options on the autopilot menu, founder and CEO Alex Kendall told TechCrunch in an interview Tuesday. Or as he puts it, a “contrarian” option – in its technical approach, and its business model.

“I think the technology chessboard has been set up where different companies have invested in the technology strategy, and now the commercial chessboard is being set up,” Kendall said. “We had a very different view on the technology side. We were the first to build deep self-driving education, and we were the pioneers of this approach. Now, when it comes to this phase of commercial entry, we’re taking the opposite business model approach.”

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

This data-driven learning approach is used for two products: an “eyes open” driving assistance system and a fully automated driving system that can be used in robotaxis or consumer cars that can handle all driving in certain areas.

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

However, it should be noted that Nvidia, which is also a sponsor, has had a close development relationship with Wave since 2018. The first Gen 3 platform, unveiled last fall, uses an in-car autonomous vehicle development kit called the Nvidia Drive AGX Thor. The Gen 3 platform will allow Wayve to offer advanced visual driver assistance systems and Level 4 driverless features that will work on city streets and highways.

The company’s technology is almost identical to Tesla’s approach to autonomous driving, although there are significant differences in their business models.

Wayve does not want to be the operator of its system to assist drive-off or “blindfold” fully automatic-driving. (In comparison, Waymo is primarily an operator of its robotaxis, though it has partners.) And Waymo doesn’t want to build cars with its own software, the approach Tesla is taking. Instead, it sells its “integrated AI” to automakers and other tech companies like Uber.

Kendall argues that this is a business model with the largest market it can address, but it’s only available because Wayve is building an all-encompassing AI.

“If you’re building an autonomous stack that’s specific to a sensor or a compute architecture, if you’re building it where you need a map or something like that, you can’t choose the third option,” Kendall said, referring to the business model option his company has chosen.

Nissan and Uber are both Wayve customers. Nissan said that the company’s self-driving system will be used to strengthen the advanced driver assistance system in their cars from 2027. Meanwhile, this year Uber plans to launch commercial trials of cars equipped with Wayve’s software.

Its relationship with Uber looks more promising than a pilot program, however. A statement from Uber CEO Dara Khosrowshahi on Tuesday gave an indication of the scope of their partnership, and the investment in Wayve.

“We are very proud to continue to deepen our relationship with Wayve, with joint deployment plans in more than 10 markets worldwide. Wayve’s powerful storage solution is purpose-built for scalability, security, and efficiency, and we are excited to work with them across OEMs and multiple geographies, which we will share more about soon.”

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

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

Updated to include additional information on $300 million in additional funding from Uber.