An autonomous car from Alibaba-backed company DeepRoute.ai drives down a street in Shenzhen, Guangdong Province, China on July 27, 2022.
David Kirton | Reuters
BEIJING — Deeproute.ai, a Chinese startup developing self-driving systems, announced a $100 million funding round on Tuesday from an undisclosed automaker, underscoring close ties with the chip maker. Nvidia.
Pitchbook data showed the Chinese company Great Wall Engine He led the investment.
DeepRoute.ai CEO Maxwell Zhu told reporters Tuesday in Chinese, translated by CNBC, that it was difficult to obtain funding, especially from a non-government source.
The startup is also collaborating deeply with Nvidia, Zhou said, noting “in-depth discussions” with the chipmaker's CEO Jensen Huang.
Chu spoke about “commercializing mass-produced autonomous driving solutions” at Nvidia's GTC AI conference last March.
Shenzhen-based Deeproute said it uses Nvidia's Orin chip for its existing driver assistance system.
The startup added that it is part of the first batch of companies in China to obtain Nvidia's latest Thor chip for cars and will release a new system using it next year that can use more visual cues to manage more complex driving scenarios.
“A lot of companies in China are competing for autonomous driving,” Zhou said. “It's actually a competition for artificial intelligence.”
Regarding the computing power of artificial intelligence, Deeproute said that it has its own ability, and it can benefit from it AlibabaIf necessary. The e-commerce and cloud computing company led a $300 million investment round in Deeproute in 2021, giving it a valuation of more than $1 billion just two years after it was founded in 2019, according to the startup.
In October 2022, the United States imposed sweeping restrictions on China's ability to access the most advanced semiconductors from Nvidia and other American companies. Automotive chips do not currently fall into this category.
Nvidia is scheduled to report its earnings for the quarter ending October 27 on November 20. For the quarter ended July 28, the chipmaker said the automotive segment saw revenue rise 37% year over year to $345 million.
Eyes on Japan
Deeproute currently works with Chinese automakers that sell their products in China. The company expects that at least three car models using its driver assistance system will hit the road this year.
Deeproute systems are already running in more than 20,000 cars on the road, Chu said. This number is expected to rise, perhaps tenfold, in the next year.
The startup, which has an office in California, said it is looking forward to working with foreign automakers and plans to participate in next year's Japanese auto show.
Tesla competition
Deeproute focused on using artificial intelligence to drive cars automatically, without relying on “high-definition maps.” This allows the vehicle to use driver assistance technology on roads where those technical parameters have not been established.
They are trending automotive technology companies such as Exping And Huawei seeks – and TeslaA strategy for developing self-leadership. The car company owned by Elon Musk focused on using cameras and artificial intelligence to guide the car, without relying heavily on high-resolution maps.
These maps, used by self-driving companies like Alphabet's Waymo, give the car a detailed picture of city streets. But they must be created before the car hits the road, a process that can lead to higher costs.
Zhou said the company is very keen on getting Tesla's driver-assistance product – called “Full Self-Driving” – into China. His reasoning is that Tesla's product will encourage more consumers to become more interested in driver-assistance features — and boost Deeproute's reputation in the segment.
When asked about the IPO plans, Zhou said that the startup would maintain its development pace, but welcomed the latest public offerings of other players in the industry.
Self-driving software developer in China We are riding It went public on the Nasdaq last month, while robotics operator Pony.ai has filed for an IPO in the US.
The industry focuses on driver assistance
Companies in China's auto industry are increasingly looking at driver assistance technology as a way to remain competitive in the market.
Pony.ai on Saturday announced an agreement to cooperate in the comprehensive development of fully self-driving robotaxis with the new energy vehicle company of the state-owned Beijing Automobile Group.
Tencent It announced on Monday that it has expanded its strategic cooperation with German automaker Bosch to work on autonomous driving and technology-enabled cockpits. The two companies agreed for the first time on strategic cooperation in 2020.
Clarification: This story has been updated to reflect that Deeproute was part of the first batch of companies in China to receive Nvidia's new Thor chip for automotive.
