Chinese autonomous driving startup Deeproute.ai has announced a successful $100 million funding round, with leading investment from Chinese automaker Great Wall Motor. The undisclosed automaker’s contribution highlights the growing interest in autonomous driving systems. Deeproute.ai’s CEO, Maxwell Zhou, expressed the challenges faced in securing financing, particularly from non-government sources. The startup also emphasized its close collaboration with chipmaker Nvidia, with whom it has engaged in “deep cooperation” and held discussions with Nvidia’s CEO, Jensen Huang.
Deeproute.ai, based in Shenzhen, revealed its utilization of Nvidia’s Orin chip for its current driver-assist system. Additionally, the company disclosed its participation as one of the first Chinese companies to obtain Nvidia’s newer Thor chip for cars. Deeproute.ai plans to release a new system next year that leverages the Thor chip, enabling more complex driving scenarios through enhanced visual cues.
Zhou emphasized that the competition in China’s autonomous driving sector is centered around artificial intelligence (AI) capabilities. Deeproute.ai asserts its own AI computing power and can tap into Alibaba’s resources if necessary. Alibaba led a $300 million investment round in Deeproute.ai in 2021, resulting in a valuation of over $1 billion, just two years after the startup’s establishment in 2019.
Despite the U.S. imposing restrictions on China’s access to advanced semiconductors, automotive chips are not currently subject to these limitations. Nvidia’s automotive segment reported a 37% year-on-year revenue increase to $345 million for the quarter ended July 28. Deeproute.ai currently collaborates with Chinese automakers operating in China and anticipates the launch of at least three car models equipped with its driver-assist system this year. The startup’s systems are already operational in over 20,000 vehicles, a number expected to potentially increase tenfold in the coming year.
Deeproute.ai, which also has an office in California, aims to expand its partnerships to include foreign automakers and plans to participate in Japan’s auto show next year. The startup’s focus lies in using AI to enable autonomous driving without relying on high-definition maps, a strategy shared by companies such as Xpeng, Huawei, and Tesla. Zhou expressed eagerness for Tesla’s “Full Self-Driving” product to enter the Chinese market, as it would generate greater consumer interest in driver-assist features and elevate Deeproute.ai’s prominence in the sector.
Regarding initial public offerings (IPOs), Zhou stated that Deeproute.ai would maintain its own development pace but welcomed the recent public offerings of other industry players. Chinese autonomous driving software developer WeRide recently went public on the Nasdaq, while Pony.ai has filed for a U.S. IPO. The Chinese automotive industry is increasingly turning to driver-assist technology to remain competitive. Pony.ai recently announced a collaboration with state-owned Beijing Automotive Group’s new energy vehicle subsidiary to mass-develop fully autonomous robotaxis. Additionally, Tencent extended its strategic cooperation with German autos supplier Bosch to focus on autonomous driving and tech-enabled cockpits.