Nvidia Joins Nuro's $203 Million Funding Round as Latest Investor
In a significant development, Nvidia has joined the bandwagon of investors supporting Nuro, a notable player in the autonomous vehicle (AV) industry. The startup has managed to secure an impressive $203 million in its latest Series E funding round.
Based in Silicon Valley, Nuro specializes in self-driving software designed particularly for delivery and ride-hailing services. Its funding round expanded with a $97 million influx from existing investor Baillie Gifford, along with contributions from new supporters such as Icehouse Ventures, Kindred Ventures, and Pledge Ventures. Notably, Uber has also played a part in this fundraising, enhancing the financial boost with a substantial investment connected to a broader collaboration with Lucid, an electric car maker.
Nvidia’s collaboration with Nuro is not unexpected. The startup has consistently employed Nvidia’s GPU technology for large-scale data processing and model training. Their current computational model is integrated with the Nvidia Drive AGX Thor platform, showcasing a deep-rooted technical synergy between the two companies.
The initial section of the Series E funding, amounting to $106 million, was disclosed in April. Esteemed investors including T. Rowe Price Associates, Fidelity Management & Research Company, Tiger Global Management, Greylock Partners, and XN were part of this initial funding wave.
Despite these achievements, Nuro has seen a decline in its valuation, pegging at $6 billion post-Series E funding — a notable decrease from its $8.6 billion valuation in 2021. This change mirrors broader trends in the AV sector, which has witnessed economic adjustments and a shift towards consolidation.
The past few years have propelled Nuro to reassess its business approach. Having undergone layoffs and strategic adjustments, the company placed emphasis on licensing its AV technology to carmakers and mobility entities, marking a departure from its original plan to operate a fleet of delivery bots.
However, Nuro's shift in focus has begun to pay dividends. Uber’s recent decision to launch a robotaxi service, outfitted with Nuro’s advanced self-driving technology in Lucid EVs, is a prime example of such successful collaborations. The partnership involves Uber’s commitment to invest an undisclosed sum in Nuro on top of a substantial $300 million deal with Lucid.
The inflow from Uber is largely attributed to the Series E, with further investments contingent upon Nuro meeting certain predefined milestones. Dave Ferguson, Nuro’s co-founder and president, asserted that the latest funding equips the company to forge further commercial alliances and advance AV technology on a global scale.
