Deeproute.ai Secures $100 Million Funding from Great Wall Motor, Highlighting Strategic Partnership with Nvidia in Advancing Autonomous Driving Technology
Fiona Nanna, ForeMedia News
5 minutes read. Updated 4:48PM GMT Tues, 5th November, 2024
In a significant move for the autonomous driving sector, Deeproute.ai, a Chinese startup focused on developing advanced driver-assist systems, announced on Tuesday that it has secured $100 million in funding from an undisclosed automaker. The investment, led by Great Wall Motor, comes at a time when financing options in China’s tech landscape are increasingly constrained, particularly from non-government sources.
Maxwell Zhou, CEO of Deeproute.ai, articulated the challenges in securing investments, stating, “It’s been difficult to obtain financing, especially from a non-government source,” during a press briefing translated by CNBC. This funding round underscores the growing interest in autonomous technologies, particularly as the automotive industry shifts toward integrating artificial intelligence (AI) into vehicle systems.
DeepRoute.ai’s relationship with Nvidia, a leader in AI and chip technology, is pivotal to its development strategy. Zhou revealed that the startup is engaged in “deep cooperation” with Nvidia, which includes ongoing discussions with the company’s CEO, Jensen Huang. This partnership is particularly significant as Deeproute leverages Nvidia’s Orin chip for its current driver-assist systems. The startup is also among the first in China to receive Nvidia’s next-generation Thor chip, which promises to enhance its systems’ capabilities, allowing vehicles to interpret more complex visual cues and navigate challenging driving scenarios.
In March, at Nvidia’s highly anticipated GTC AI conference, Zhou spoke about “Commercializing mass-produced autonomous driving solutions,” setting the stage for the company’s ambitious plans in the automotive sector. As part of its growth trajectory, Deeproute currently has its technology operating in over 20,000 vehicles, with expectations to scale that number significantly in the coming year.
China’s autonomous vehicle landscape is becoming increasingly competitive. Zhou noted, “Lots of companies in China are competing on autonomous driving. It is actually a competition over AI.” The startup is not only reliant on its computing power but also has access to Alibaba’s cloud infrastructure, which previously led a $300 million investment round in Deeproute.ai in 2021, propelling the startup’s valuation to over $1 billion just two years after its inception in 2019.
The funding landscape has been influenced by broader geopolitical tensions. In October 2022, the United States imposed strict restrictions on China’s access to advanced semiconductors produced by American companies, including Nvidia. However, automotive chips remain outside these restrictions, allowing Deeproute and similar companies to continue their development without significant hindrance.
Looking ahead, Deeproute has set its sights on the international market, particularly Japan, where it plans to showcase its technology at next year’s auto show. The company is focused on collaborating with foreign automakers as it expands its footprint beyond China. Zhou expressed optimism about the potential for collaboration with Tesla, stating that the introduction of Tesla’s driver-assist product, known as “Full Self-Driving,” into the Chinese market could spark greater consumer interest in driver-assist features and enhance Deeproute’s visibility in the sector.
As the industry evolves, driver-assist technology is becoming increasingly essential for automotive manufacturers aiming to remain competitive. Companies like Pony.ai and Tencent are also investing in this space, with Pony.ai recently entering into an agreement with Beijing Automotive Group to mass-develop fully autonomous robotaxis. Meanwhile, Tencent has extended its partnership with German supplier Bosch to advance autonomous driving and tech-enabled cockpit innovations. Deeproute.ai’s latest funding round not only highlights the growing investment in autonomous technology in China but also reflects the increasing importance of international collaborations in shaping the future of the automotive industry.
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