Waabi Secures Historic $1 Billion, Shifts Gears from Autonomous Trucks to Uber Robotaxis

In a landmark deal for the autonomous vehicle industry, Toronto's Waabi has secured up to $1 billion in new funding, the largest private investment in Canadian tech history. The capital will fuel a strategic expansion from long-haul trucking into the competitive robotaxi market through an exclusive partnership with Uber.

The funding round includes a $750 million Series C investment and a $250 million commitment from Uber, contingent on performance milestones. The agreement calls for deploying at least 25,000 Waabi-powered autonomous vehicles on Uber's network. This pivot leverages the company's core technology: an end-to-end AI driving system, extensively trained in a proprietary simulator called Waabi World, which is now being adapted for passenger vehicles.

Founded in 2021 by AI scientist Raquel Urtasun, Waabi has now raised over $1.3 billion. The company will not own or operate vehicle fleets. Instead, it plans to license its "Waabi Driver" AI system, collecting a fee for each mile driven. Uber will handle operations, including maintenance and charging.

Waabi's move comes as the AV sector reaches a critical juncture. While rivals like Waymo and Cruise have focused primarily on robotaxis, and others have struggled in trucking, Waabi believes its trucking foundation provides a unique advantage. Operating large, heavy vehicles on highways has honed its system for complex, high-stakes environments, which the company says translates well to urban navigation.

"Our current self-driving capabilities have unlocked a new model that solves the industry's pain points," Urtasun stated. The company has been testing its technology on freight routes in Texas since 2023 and has partnerships with truck manufacturers Volvo and Peterbilt.

The significant investment, led by Khosla Ventures and G2 Venture Partners, signals strong investor confidence in Waabi's capital-efficient approach, which relies more on simulation than billions of real-world test miles. With regulatory support in states like Texas, Waabi aims to launch driverless trucks by the end of this year, with robotaxis to follow.

Source: Webpronews