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

BEIJING — Deeproute.ai, a Chinese startup processing autonomous driving systems, announced a $100 cardinal backing circular Tuesday from an undisclosed automaker, portion emphasizing adjacent ties with chipmaker Nvidia.

Pitchbook information showed Chinese institution Great Wall Motor led the investment.

It's been hard to get financing, particularly from a non-government source, Maxwell Zhou, CEO of DeepRoute.ai, told reporters Tuesday successful Mandarin, translated by CNBC.

The startup is besides successful "deep cooperation" with Nvidia, Zhou said, noting "in-depth discussions" with the chipmaker's CEO Jensen Huang.

Zhou spoke connected "Commercializing mass-produced autonomous driving solutions" astatine Nvidia's intimately watched GTC AI league successful March.

Shenzhen-based Deeproute said it uses Nvidia's Orin spot for its existent driver-assist system.

The startup added it is the archetypal institution successful China to get Nvidia's newer Thor spot for cars and volition merchandise a caller strategy utilizing it adjacent twelvemonth that tin usage much ocular cues to negociate much analyzable driving scenarios.

"Lots of companies successful China are competing connected autonomous driving. It is really a contention implicit AI," Zhou said.

In presumption of AI computing power, Deeproute said it has its ain capacity, and tin pat Alibaba's if needed. The e-commerce and unreality computing institution led a $300 cardinal concern circular successful Deeproute successful 2021, giving it a valuation of much than $1 cardinal conscionable 2 years aft it was founded successful 2019, according to the startup.

The U.S. successful October 2022 imposed sweeping restrictions connected China's quality to entree the astir precocious semiconductors from Nvidia and different American companies. Automotive chips don't presently autumn successful that category.

Nvidia is scheduled to merchandise net for the 4th ended Oct. 27 connected Nov. 20. For the 4th ended July 28, the chipmaker said its automotive conception saw gross emergence by 37% year-on-year to $345 million.

Deeproute presently works with Chinese automakers selling successful China. The institution expects astatine slightest 3 car models utilizing its driver-assist strategy volition deed the roadworthy this year.

Already, Deeproute's systems are moving successful much than 20,000 cars connected the road, Zhou said. He expects that fig to increase, perchance by ten-fold, adjacent year.

The startup, which has an bureau successful California, said it is looking to enactment with overseas automakers and plans to enactment successful Japan's car amusement adjacent year.

Deeproute has focused connected utilizing artificial quality to automatically thrust cars, without relying connected "high-definition maps." That allows a conveyance to usage operator assistance tech connected roads wherever those method parameters haven't been created.

It's a inclination car tech companies specified arsenic Xpeng and Huawei are pursuing — and Tesla's strategy for processing autonomous driving. Elon Musk's car institution has focused connected utilizing cameras and artificial quality to steer the vehicle, without dense reliance connected HD maps.

Those maps, utilized by autonomous driving companies specified as Alphabet's Waymo, springiness a car a elaborate representation of metropolis streets. But they request to beryllium created earlier a car runs connected the road, a process that tin thrust up costs.

Zhou said the institution is precise anxious for Tesla's driver-assist merchandise — called "Full Self-Driving" — to participate China. His reasoning is that Tesla's merchandise volition promote much consumers to go much funny successful driver-assist features — and boost Deeproute's prominence successful the sector.

When asked astir IPO plans, Zhou said the startup would support to its ain improvement pace, but it welcomed the latest nationalist offerings of different manufacture players.

Chinese autonomous driving bundle developer WeRide went nationalist connected the Nasdaq past month, portion robotaxi relation Pony.ai has filed for a U.S. IPO.

Companies successful China's autos manufacture are progressively looking astatine driver-assist tech arsenic a mode to enactment competitory successful the market.

Pony.ai announced Saturday an statement to cooperate connected mass-development of afloat autonomous robotaxis with state-owned Beijing Automotive Group's caller vigor conveyance subsidiary.

Tencent connected Monday announced it extended its strategical cooperation with German autos supplier Bosch to enactment connected autonomous driving and tech-enabled cockpits. The 2 companies archetypal agreed to strategical practice successful 2020.