Deeproute claims ‘deep collaboration’ with Nvidia in the field of driver assistance

BEIJING – Deeproute.ai, a Chinese startup developing autonomous driving systems, announced a $100 million funding round from an undisclosed automaker on Tuesday, highlighting close ties with the chipmaker Nvidia.

Pitchbook data showed a Chinese company Great Wall Engine led the investment.

It has been difficult to obtain funding, especially from a non-governmental source, Maxwell Zhou, CEO of DeepRoute.ai, told reporters on Tuesday in Mandarin, as translated by CNBC.

The startup is also “deeply collaborating” with Nvidia, Zhou said, noting “in-depth discussions” with the chipmaker’s CEO, Jensen Huang.

Zhou talked about “Commercialization of mass-produced autonomous driving solutions” at Nvidia’s closely watched GTC AI conference in March.

Shenzhen-based Deeproute said it is using Nvidia’s Orin chip for its current driver assistance system.

The startup added that it is part of the first group of companies in China to acquire 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.

“Many companies in China are competing in autonomous driving. It’s actually a competition for AI,” said Zhou.

In terms of AI computing power, Deeproute says it has and can tap into its own capacity Alibaba.com‘s if necessary. The e-commerce and cloud computing company led a $300 million investment round in Deeproute in 2021, giving it a valuation of more than $1 billion just two years after its founding in 2019, the startup said.

The US in October 2022 imposed sweeping restrictions on China’s ability to access the most advanced semiconductors from Nvidia and other US companies. Car chips currently do not fall into that category.

Nvidia is expected to report earnings for the quarter ending October 27 on November 20. For the quarter ended July 28, the chipmaker said its automotive segment saw revenue rise 37% year-over-year to $345 million.

Deeproute is currently working with Chinese car manufacturers that sell in China. The company expects that at least three car models with driver assistance systems will appear on the road this year.

Deeproute’s systems are already active in more than 20,000 cars on the road, Zhou said. He expects this number to possibly increase tenfold next year.

The startup, which has an office in California, said it wants to work with foreign automakers and plans to participate in the Japanese auto show next year.

Deeproute has focused on using artificial intelligence to drive cars automatically, without relying on high-definition maps. This allows a vehicle to use driver assistance technology on roads where these technical parameters have not been created.

It’s a trend for automotive tech companies like Xpeng and Huawei strive to – and Tesla‘s strategy for the development of autonomous driving. Elon Musk’s car company has focused on using cameras and artificial intelligence to control the vehicle, without relying heavily on HD maps.

Those maps, used by autonomous driving companies such as Alphabet’s Waymo, give a car a detailed view of city streets. But they have to be made before a car is on the road, a process that can drive up costs.

Zhou said the company is very keen for Tesla’s driver assistance product, called “Full Self-Driving”, to enter China. His reasoning is that Tesla’s product will encourage more consumers to become more interested in driver assistance features – and increase Deeproute’s profile in the industry.

When asked about IPO plans, Zhou said the startup would maintain its own pace of development but welcomed the latest public offerings from other industry players.

Chinese software developer for autonomous driving WeRide went public on the Nasdaq last month, while robotaxi operator Pony.ai has filed for a US IPO.

Companies in China’s automotive industry are increasingly looking to driver assistance technology as a way to stay competitive in the market.

Pony.ai announced a partnership agreement on Saturday massive development of fully autonomous robotaxis with the new energy vehicle subsidiary of state-owned Beijing Automotive Group.

Tencent on Monday announced that it has expanded its strategic partnership with German car supplier Bosch to work on autonomous driving and technology-based cockpits. The two companies agreed on a strategic partnership for the first time in 2020.

Clarification: This story has been updated to reflect that Deeproute was part of the first group of companies in China to acquire Nvidia’s new Thor chip for cars.