Nvidia and Chinese driver-assist startup collaborate on $100 million funding.

• An undisclosed automaker invested $100 million in Deeproute.ai, a Chinese startup developing autonomous driving systems, while highlighting its partnership with chipmaker Nvidia.
• Pitchbook data showed Chinese company Great Wall Motor led the investment.
• Maxwell Zhou, CEO of DeepRoute.ai, announced on Tuesday that the startup is in "deep cooperation" with Nvidia.

Beijing-based autonomous driving startup Deeproute.ai secured $100 million in funding from an unnamed automaker on Tuesday, highlighting its partnership with chipmaker.

Pitchbook data showed Chinese company led the investment.

Maxwell Zhou, CEO of DeepRoute.ai, stated on Tuesday in Mandarin that obtaining financing, particularly from non-government sources, has been challenging.

Zhou stated that the startup is in "deep cooperation" with Nvidia and had "in-depth discussions" with CEO Jensen Huang.

In March, at Nvidia's closely watched GTC AI conference, Zhou discussed "Commercializing mass-produced autonomous driving solutions."

Deeproute, a Shenzhen-based company, revealed that it utilizes Nvidia's Orin chip for its present driver-assist system.

The startup is the first Chinese company to obtain Nvidia's newer Thor chip for cars and will release a new system next year that can use more visual cues to manage more complex driving scenarios.

Zhou stated that the competition in China among companies for autonomous driving is essentially a battle over AI.

Deeproute, an e-commerce and cloud computing company, led a $300 million investment round in 2021, valuing the company at more than $1 billion just two years after its founding in 2019.

In October 2022, the U.S. imposed restrictions on China's access to advanced semiconductors from Nvidia and other American companies. However, automotive chips are not currently affected by these restrictions.

Nvidia will reveal its earnings for the quarter ended October 27 on November 20. In the previous quarter, which ended July 28, the company reported a 37% increase in revenue in its automotive segment, reaching $345 million.

Eyes on Japan

This year, at least three car models featuring Deeproute's driver-assist system are expected to be sold in China by Chinese automakers.

Zhou anticipates that the number of cars using Deeproute's systems will increase ten-fold next year, with more than 200,000 cars already running the system.

The California-based startup intends to collaborate with foreign automakers and is planning to exhibit at Japan's auto show in the upcoming year.

Tesla competition

Deeproute has focused on developing AI technology to enable cars to drive autonomously without the need for "high-definition maps." This enables vehicles to utilize driver assist technology on roads where technical specifications have not been established.

Car tech companies such as Tesla and Huawei are following Elon Musk's strategy for developing autonomous driving by using cameras and artificial intelligence to steer the vehicle, without heavy reliance on HD maps.

The creation of those maps, which are utilized by autonomous driving companies such as Alphabet's Waymo, is a costly process that must be completed before a car can operate on the road.

Zhou believes that Tesla's "Full Self-Driving" product will increase consumer interest in driver-assist features and enhance Deeproute's market position in China.

Zhou stated that the startup would maintain its own growth rate, but it was open to the recent public offerings of other industry competitors.

Last month, a Chinese autonomous driving software developer went public on the Nasdaq, and robotaxi operator Pony.ai filed for a U.S. IPO.

Industry focus on driver-assist

In order to remain competitive in the market, companies in China's automotive industry are increasingly focusing on driver-assist technology.

Beijing Automotive Group's new energy vehicle subsidiary and Pony.ai announced an agreement to cooperate on mass-development of fully autonomous robotaxis.

In 2020, the two companies first agreed to strategic cooperation, and on Monday, it was announced that the cooperation has been extended to focus on autonomous driving and tech-enabled cockpits.