AI self-driving tech pioneer Wayve is reportedly in advanced discussions to secure up to $2 billion in a funding round that could see its valuation soar to around $8 billion. Tech industry giants Microsoft and SoftBank are understood to be leading the talks.
This potential capital injection would represent one of the largest ever for a UK-based AI firm and would firmly establish Wayve as a global leader in the race to develop truly autonomous vehicles. The move signals immense investor confidence in Wayve’s unique approach, which prioritises a sophisticated ‘Embodied AI’ learning system over the heavily map-dependent and sensor-laden methods used by many of its competitors.
According to Ashish Patel, Managing Director in Houlihan Lokey’s Capital Solutions Group, there is strong and sustained demand for AI companies, particularly those operating in the “Application Layer”. He notes that beyond self-driving cars, investors are keenly focused on technologies enabling everything from fast software development and more efficient healthcare support to advanced defence systems.
This latest funding negotiation for Wayve follows news from last month when chipmaking powerhouse Nvidia signed a letter of intent for a potential $500 million strategic investment. The potential involvement of both Microsoft and Nvidia is seen as a major technical and commercial endorsement.
Patel observes that an interesting phenomenon has been the emergence of large US-based corporations, like Microsoft and Nvidia, deploying capital into these application-focused companies. He explains this has a multi-fold benefit.
The startups gain access to deep insights and sometimes even early technology releases, helping to drive a competitive advantage. Simultaneously, the corporate investor is able to further embed its core technology, such as cloud computing or specialised chips, allowing them to capture more of the value chain. Financial investors, in turn, view these kinds of syndicate partners very favourably—treating selective investment by corporate players as a partial validation of a company’s potential.
Founded in 2017, Wayve has championed an “end-to-end” deep learning model it calls Embodied AI. This system learns to drive from vast amounts of data, teaching itself to navigate complex urban environments in a manner more similar to human learning. This contrasts with traditional autonomous systems that often rely on pre-programmed rules and high-definition maps, which can be brittle and difficult to scale.
The collaboration with Nvidia, which dates back to 2018, is central to this technical prowess. Wayve’s forthcoming Gen 3 platform will be built on the powerful NVIDIA DRIVE AGX Thor, which is accelerated by the new Blackwell GPU architecture. This state-of-the-art system is designed to push the frontier of embodied AI, advancing Wayve’s AI Driver towards “eyes-off” (Level 3) and fully driverless (Level 4) capabilities.
Speaking on the partnership with NVIDIA last month, Alex Kendall, Co-founder and CEO of Wayve, said: “Continued support from a global technology leader like NVIDIA underscores confidence in our AV2.0 approach.”
The success of companies like Wayve proves that globally impactful businesses can be built in Europe, challenging the notion that AI enablement is a purely US-based endeavour. As Patel highlights, investors are leaning into companies that can demonstrate meaningful traction, technical skill, and a global market of customers.
“Global investors take note of this,” Patel says, “and many of the fundraises we see happening across Europe include a mix of US, Middle Eastern & Asian investors, alongside an increasingly well-built European growth equity ecosystem.”
This latest potential funding round builds upon a history of successful financing for the firm. Wayve secured over $1 billion in a previous round last year, also led by Japan’s SoftBank. The company’s partnerships also include an undisclosed investment made by Uber in 2024.
Operationally, Wayve has been expanding its footprint beyond its home base. While its core development is centred in the UK, the company has actively pushed into the US and has recently begun establishing operations in other key automotive markets, including Germany and Japan. This international expansion will be needed to gather diverse driving data to train its models.
If the deal is finalised, the fresh capital would undoubtedly accelerate Wayve’s AI advancements, scale up its global testing fleet, and help it move closer to commercialising its technology for logistics, public transport, and ride-hailing services.
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