UK self-driving startup Wayve raises $1.2 billion from investors including Mercedes, Stellantis

British company Wayve, a pioneer in AI-based autonomous driving, has just raised $1.2 billion in a Series C funding round. This is the largest transaction in European history for a startup developing artificial intelligence. Among the main investors are tech giants such as Nvidia and Microsoft, as well as key players from the automotive industry: Mercedes-Benz, Stellantis (owner of brands such as Fiat, Peugeot, and Opel), and Nissan. SoftBank, which had previously supported Wayve, also participated in this round. The funds are to be allocated for further research and development and, most importantly, for the commercialization of the technology in the United Kingdom. Autonomous driving technology has been developing for years, starting with the first prototypes in the 1980s. A breakthrough came in 2004 when DARPA organized the first competition for self-driving vehicles, and in the second decade of the 21st century, companies such as Google (Waymo) and Tesla accelerated the race. A key paradigm shift is the transition from traditional, rule-based systems to machine learning models and so-called „embodied AI,” i.e., AI capable of interacting with the physical world, which is Wayve's specialty. Wayve focuses on so-called „embodied AI” – advanced artificial intelligence models that enable vehicles to interpret their surroundings and make decisions in real-time. The company argues that its approach, based on so-called „AI foundation models,” is more flexible and scalable than traditional programming methods. With the new funds, Wayve plans to accelerate the development of the next generation of AI models, which are to be deployed in partners' vehicles. The company's CEO, Alex Kendall, emphasizes the strategic importance of partnerships with car manufacturers. „This is an investment in the future of cars. With this capital, we can accelerate the development and deployment of our pioneering AI technology, making driving safer.” — Co-founder and CEO of the British startup Wayve. The investment has key geopolitical significance, as it represents Europe's response to the dominance of American (Cruise, Waymo) and Chinese companies in the race for autonomous driving. The British government actively supports this sector, preparing legal frameworks, including the upcoming Autonomous Vehicles Bill. It is planned that the first vehicles equipped with Wayve's technology will appear on British roads within the next few years, which could transform the country into a global innovation hub in this field. 1.2 mld USD — Value of Wayve's funding round Additionally, the company is developing a business model based on licensing software to car manufacturers, which is intended to provide recurring revenue, similar to a phone operating system provider.