Wayve Raises $1.2 Billion to Bring Self-Driving AI to Every Car Maker
Wayve, a London-based startup building AI software for autonomous vehicles, has raised $1.2 billion in a funding round that values the company at $8.6 billion. It's one of the largest amounts ever raised by a European startup — and the latest sign that billions keep flowing into self-driving technology even as profitability remains elusive.
Who's Betting on Wayve
The investment was led by venture capital firms Eclipse and Balderton Capital, and includes some of the biggest names in tech and automotive: SoftBank, Microsoft, Nvidia, Uber, Mercedes-Benz, Nissan, and Stellantis. The funding could grow to $1.5 billion if Wayve meets certain performance targets.
This follows a $1 billion raise in 2024, showing sustained investor confidence in the company's approach to autonomous driving.
A Different Approach to Self-Driving
While Waymo has built a stand-alone taxi service and Tesla is developing both cars and software, Wayve is taking a third path: building only the AI software and licensing it to any car manufacturer.
The software uses cameras, sensors, and real-time data to let vehicles make driving decisions — relying less on pre-mapped routes and more on AI that learns from every mile driven. Data collected as cars travel is fed back into Wayve's centralised AI system, helping all vehicles using the technology improve over time.
"It works on any vehicle produced by any manufacturer," said Alex Kendall, Wayve's CEO, who co-founded the company in 2017 after studying computer vision and robotics at Cambridge University.
The Timeline
Wayve expects to have driverless taxis on the road this year through a commercial trial with Uber, starting in London. Consumer vehicles incorporating the technology will be available to buy by 2027, with a driver still behind the wheel for "supervision."
The Reality Check
For all the investment hype, the autonomous vehicle industry still faces enormous challenges. Technical hurdles, government regulations, safety concerns, and public skepticism remain significant barriers. Wayve lost nearly $62 million in 2024, and no autonomous vehicle company has yet turned the technology into a consistently profitable business.
Waymo, owned by Google's parent company, recently raised $16 billion to expand globally — dwarfing Wayve's round and highlighting the scale of capital required in this space.
Europe's AI Moment
The investment is good news for Europe's tech sector, which has long lagged behind the United States. European startups raised about $69 billion last year compared to $320 billion for US startups. But AI is closing the gap: Mistral (France) raised $2 billion, Nscale (London) raised over $1 billion, and Helsing (Germany) raised $700 million — all in recent months.
Bottom Line
Wayve's $1.2 billion raise signals continued investor appetite for autonomous driving — but the gap between funding and profitability in this space remains wide. The "software-only" licensing model is a smart bet on paper, but the real test comes when cars hit the road. Billions in. Zero profit out. The timeline is always "soon."