Silicon Valley self-driving firm Nuro raises $203m with Nvidia, Uber backing

Nuro, a Silicon Valley-based developer of self-driving software for delivery and ride-hailing services, has raised US$203 million in its series E round after securing an additional US$97 million from investors including Nvidia, Icehouse Ventures, Kindred Ventures, and Pledge Ventures.

Existing backer Baillie Gifford also joined the latest tranche, while Uber contributed as part of a deal involving electric vehicle maker Lucid.

Nvidia’s investment follows years of technical collaboration with Nuro, whose latest compute model is built on Nvidia’s Drive AGX Thor platform.

The first US$106 million of the series E round was closed in April, with participation from T. Rowe Price Associates, Fidelity Management & Research Company, Tiger Global Management, Greylock Partners, and XN.

Nuro has raised US$2.3 billion to date and is now valued at US$6 billion, down 30% from its US$8.6 billion valuation in 2021.

The company now focuses on licensing its technology to automakers and mobility providers.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Autonomous vehicle companies are shifting from capital-intensive operations to licensing models

Nuro’s current funding round reflects broader industry trends toward sustainable business models.

In September 2024, the company shifted from owning and operating its own delivery robot fleet to licensing its self-driving technology to automakers and mobility companies2.

This change extended Nuro’s financial runway from 1.5 years to 3.5 years by reducing the capital-intensive costs of fleet operations2.

The licensing approach is gaining traction. Nuro’s partnership with Uber to equip Lucid Gravity SUVs with its autonomous driving technology demonstrates how this model can generate revenue streams.

Uber invested $300 million in Lucid and committed to purchasing at least 20,000 vehicles over six years, while also making a significant investment in Nuro1.

This pivot from hardware operations to software licensing reflects the industry’s recognition that deploying and maintaining autonomous vehicle fleets requires enormous ongoing capital investment that many startups cannot sustain long-term.