Self-driving technology startup Wayve raises $1.2B from Nvidia, Uber, and three automakers.

Wayve’s self-driving technology has attracted a variety of investors in the company’s recent $1.2 billion round of funding, including three automakers, top businesses and corporations, and backers Microsoft, Nvidia, and Uber. The total increase could reach $1.5 billion thanks to an additional $300 million from Uber to deploy robotaxis, starting in London.

Everyone, it seems, wants a piece of the UK startup, which is now valued at $8.6 billion. The funding round reflects the interest among Big Tech, automakers, and the investment community to capitalize on the booming self-driving car business.

Wayve offers what founder and CEO Alex Kendall calls a “contrarian” approach to driving — contrarian in both its technology and business processes, he told TechCrunch in an interview Tuesday.

“I think the chessboard technology is set where different companies have invested in the technology, and now the commercial chessboard is being developed,” Kendall said. “We had a very controversial approach to the technology. We are the first to develop deep learning towards the end of autonomous driving, and we pioneered this approach. Now, when it comes to this step towards commercialization, we are also taking an anti-business approach.”

Wavefounded in 2017, uses a self-learning approach for its programs. The company developed a software program that uses a neural network endpoint that does not require a well-known map and only uses data to train the car to drive.

This data-driven learning approach supports two things: “eyes on” assisted driving and “eyes off” autonomous driving systems that can be used for robotaxis or shopping carts that can drive all vehicles in certain locations.

What the company looks for in customers is a state of the art technology, which does not rely on sensors or maps. Autopilot software captures data from every sensor in the vehicle and guides the system’s driving decisions. Wayve’s software can also run on any chip that OEM partners already have in their vehicles.

However, it should be remembered that Nvidia, which is also a sponsor, has had a close development relationship with Wayve since 2018. The first Gen 3 program, which was unveiled last fall, uses an autonomous driving system called Nvidia Drive AGX Thor. The Gen 3 program will allow Wayve to offer self-driving and Level 4 – or driverless – solutions that will work on city streets and highways.

The company’s technology is similar to Tesla’s approach to self-driving cars, although there are significant differences in their business practices.

Wayve doesn’t want to be a user of its hands-free driving system or its “eyes removal” self-driving system. (In comparison, Waymo is primarily a robotaxis operator, although it has partners.) Nor does Wayve want to build cars full of its own software, as Tesla does. Instead, it is selling its “AI” to automakers and other tech companies like Uber.

Kendall argues that this is the business model that has the largest possible market share, but says it is possible because Wayve has developed AI that is compatible with different devices and environments.

“If you’re going to build an independent stack that’s related to a device or a computer architecture, (or) if you’re going to build one that needs to be mapped or something like that, then you can’t choose three options,” Kendall said, referring to his company’s chosen business.

Nissan and Uber are both Wayve customers. Nissan said the initial self-driving program will be used to power the driver assistance system for its vehicles. starting in 2027. Meanwhile, at the end of this year, Uber plans to start commercial testing of cars equipped with the Wayve app.

Its relationship with Uber seems poised to go beyond the driver app, however. Uber CEO Dara Khosrowshahi’s statement on Tuesday indicated the extent of his partnership and investment in Wayve.

“We are very proud to continue to expand our partnership with Wayve, with plans to deploy together in more than 10 markets around the world. Wayve’s powerful end-to-end solution is designed for growth, security, and power, and we are excited to work with OEMs and multiple geographies, which we will share more about in the near future.”

The round was led by Eclipse, Balderton, and SoftBank Vision Fund 2. New investors include the Ontario Teachers’ Pension Plan, Baillie Gifford, British Business Bank, Icehouse Ventures, Schroders Capital, and other international institutions, the company said.

Global automakers Mercedes-Benz, Nissan, and Stellantis – all of which plan to use Wayve’s technology – also participated. Nvidia, who participated in Wayve’s $1.05 billion Series C round, said last year it was evaluating a $500 million investment in Wayve’s next upgrade. Although Nvidia participated, Kendall did not disclose the amount of the investment or if it came close to $500 million.

It has been updated to include more than $300 million in additional funding from Uber.