In a major boost to the autonomous vehicle industry, Waabi, an autonomous trucking startup, has raised $200 million in a Series B funding round. The round saw significant investments from tech giant Nvidia (NASDAQ:NVDA), ride-hailing service provider Uber (NYSE:UBER), and automobile manufacturer Volvo (OTC:VOLVY).
What Happened: The announcement was made on Tuesday by the Toronto-based company, which is at the forefront of using generative AI in the physical world. The funding round was led by Uber and Khosla Ventures, and saw participation from strategic investors including Nvidia, Volvo Group Venture Capital, Porsche Automobil Holding SE, Scania Invest, and Ingka Investments. This funding has increased Waabi's total investment to over $280 million.
The funds will be used to support Waabi's ambition of launching fully driverless, generative AI-powered autonomous trucks by 2025. Waabi's innovative approach to AI has helped it achieve near Level 4 autonomy, a significant industry milestone, just three years after its inception.
"We have everything we need — breakthrough technology, an incredible team, and pioneering partners and investors — to launch fully driverless autonomous trucks in 2025. This is monumental for the industry and truly marks the beginning of the next frontier for AI," said Raquel Urtasun, Founder and CEO of Waabi.
With this round of investment, Waabi is planning to launch its driverless trucks in Texas and expand operations to new geographies, transforming the supply chain.
Why It Matters: The autonomous vehicle sector has seen significant interest and investment in recent years. In May, Nvidia invested in a $1.05 billion funding round for Wayve Technologies Ltd., a U.K. startup focused on advancing autonomous driving technology.
Moreover, early-stage startups have started focusing on off-road applications, carving out a new niche in the autonomous vehicle technology sector. This new approach has attracted interest from the U.S. Department of Defense and venture capital investors.
However, despite these advancements, a recent study by the American Automobile Association (AAA) revealed that 66% of drivers are still apprehensive about the idea of self-driving cars. This suggests that while the technology is advancing rapidly, public perception and acceptance may still be a hurdle to overcome.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari