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DeepRoute raises $100M in push to beat Tesla’s FSD in China

From TechCrunch

By Rebecca Bellan

November 4, 2024

DeepRoute raises $100M in push to beat Tesla’s FSD in China

DeepRoute raises $100M in push to beat Tesla’s FSD in China

DeepRoute.ai, a Shenzhen-based autonomous driving technology startup, raised $100 million from Great Wall Motor. The startup aims to get its automated driving systems into as many vehicles in China before Tesla takes off next year, according to a Reuters report.

DeepRoute did not publicly disclose the name of its automaker backer, but reports in the Chinese media, including a press release, point to Great Wall Motor. The automaker is one of China’s biggest, with new vehicle sales hitting 970,612 in the first 10 months of this year. GWM’s presence in Europe is also increasingly growing, as it works with BMW to produce the next Mini EV hatchback.

Alibaba-backed DeepRoute originally pursued Level 4 robotaxi R&D and development, but in 2022, the company shifted its strategy to focus on producing Level 2+ and Level 3 autonomous technology instead. (The SAE defines Level 4 systems as ones that can drive themselves in certain conditions without needing a human to take over. Level 2+ and Level 3 are driver assistance systems that require a human to remain attentive and take over when the system requests it.)

A spokesperson for DeepRoute told TechCrunch the startup will use the money to develop end-to-end visual-language-action models, which can directly interpret visual and language inputs to make driving decisions without separate steps needed for perception, planning, and control. DeepRoute also plans to use the funds to explore the possibilities for a future robotaxi business globally and to collaborate with more automakers.

That last goal seems to be top of mind for the startup, particularly as the Tesla’s driver assistance system, called Full Self-Driving (FSD), is gearing up to launch in China and Europe in the first quarter of 2025. China lifted certain restrictions on Tesla vehicles in April, clearing a path for the automaker to roll out FSD, which isn’t actually fully self-driving but does perform some automated driving tasks in cities and on highways.

DeepRoute is now racing to get its own ADAS into around 200,000 cars in China by the end of 2025, CEO Maxwell Zhou told Reuters. That’s a 10x increase from the 20,000 vehicles its tech is deployed in today. 

The first vehicle model with DeepRoute’s system, which has yet to be publicly disclosed, launched in August. Zhou said the tech will come to two more models, including one co-owned by Geely and Mercedes-Benz, this year.

DeepRoute charges automakers a technology licensing fee per car and collects data that it uses to train its AI to handle more complicated traffic situations.

This article was originally published November 4 at 9:11 am PT. It has been updated to include more information about DeepRoute’s backer and goals.

View original article on techcrunch.com

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