A Toronto-based autonomous driving software provider has secured new funding to support the development of artificial intelligence systems.
On Jan. 28, Waabi closed an oversubscribed US$750 million Series C financing round. The round was co-led by Khosla Ventures and G2 Venture Partners.
The announcement also includes a milestone-based future investment commitment from Uber. That investment is tied to a partnership to deploy robotaxis using Waabi’s software on Uber’s platform. Total capital associated with the announcement is described as about $1 billion.
Founded in 2021, Waabi develops autonomous driving software. The system is based on what the company calls physical AI. Physical AI combines machine learning with physics-based simulation. Virtual environments that model real-world physics are used to train self-driving systems before deployment on public roads. The approach reduces reliance on real-world driving data.
“At the centre of our approach is physical AI,” founder and CEO Raquel Urtasun said in the release. “Our current self-driving capabilities across highways and generalized surface streets have unlocked a new direct-to-customer model that for the first time solves the pain points of the industry.”
Waabi’s core software is known as the Waabi Driver. It is an end-to-end artificial intelligence model. The system integrates perception, decision-making and vehicle control. The same model is designed to operate across different vehicle types. These include heavy-duty trucks and passenger vehicles.
The release states the funding will be used to further develop the physical AI platform. It will also support commercialization of autonomous trucking and expansion into robotaxis. Autonomous trucking refers to the use of self-driving technology in freight transport, typically on highways and defined routes. Robotaxis are fully autonomous passenger vehicles that operate without a human driver.
Under the partnership framework outlined in the release, the plan calls for the deployment of 25,000 or more robotaxis. The vehicles would be equipped with the Waabi Driver. Deployment would take place on Uber’s platform. The rollout is subject to development milestones and regulatory approvals.
“Waabi’s expanded focus on robotaxis marks an important milestone for their team and the AV industry more broadly,” Uber CEO Dara Khosrowshahi said in the release. “We’re very excited to deepen our partnership with Waabi as they significantly scale their physical AI platform.”
The investor group includes NVentures, Volvo Group Venture Capital, Porsche Automobil Holding SE, BlackRock, Radical Ventures, HarbourVest Partners, an Abu Dhabi Investment Authority subsidiary, Linse Capital, Incharge Capital, BDC Capital’s Thrive Venture Fund, Export Development Canada, TELUS Global Ventures and BMO Global Asset Management.
