DeepRoute AI is set to introduce over 10 vehicle models in collaboration with its automotive partners by 2025. This expanding fleet is expected to not only generate revenue through technology licensing fees per vehicle but also gather critical data to enhance its artificial intelligence capabilities, enabling it to navigate increasingly complex traffic scenarios.
The Shenzhen-based startup, a prominent player in autonomous driving technology, has announced a successful $100 million fundraising round led by an unnamed Chinese automaker. This financial boost aims to advance the widespread adoption of DeepRoute’s systems, positioning it competitively against Tesla in the Chinese market. CEO Maxwell Zhou indicated that the number of vehicles equipped with their sophisticated assisted driving technology is projected to rise to nearly 200,000 by the end of 2025, a significant leap from the current figure of around 20,000.
DeepRoute’s system is designed to manage urban traffic, akin to Tesla’s Full Self-Driving (FSD) technology, which is anticipated to be launched in China shortly. Zhou noted that the first model featuring DeepRoute’s system debuted in August, with two additional models, including one under the smart brand co-owned by Geely and Mercedes-Benz, set to reach consumers later this year.
As the fleet grows, revenue will be generated through licensing fees associated with each vehicle, while simultaneously collecting valuable data essential for refining the AI technology, enabling it to tackle more intricate traffic challenges, Zhou explained.
Among DeepRoute’s existing investors is the e-commerce powerhouse Alibaba, and the recent funding round’s sole investor is a Chinese automaker whose identity remains undisclosed. The company has not revealed its valuation following this funding initiative.
Automakers are fiercely competing to deliver more sophisticated autonomous driving features, aiming to attract Chinese consumers amid an ongoing intense price competition among numerous models in the world’s largest automotive market. This year’s announcement by Tesla CEO Elon Musk about the launch of the FSD system in China has further intensified interest, prompting other manufacturers to accelerate their development efforts to stay relevant.
Zhou recognizes Tesla’s role as a trailblazer in integrating advanced learning technologies into autonomous driving but emphasizes the need for adaptation to the nuances of the Chinese market. “China’s traffic presents unique challenges, including pedestrians on highways and the rapid movement of millions of scooters making deliveries,” he stated.
Looking ahead, Zhou mentioned that DeepRoute AI is also exploring opportunities in international markets, including Europe, Southeast Asia, and the Middle East, forecasting that demand for advanced autonomous driving technologies may arise around 2027 and 2028.
Founded in 2019, DeepRoute AI has been developing its autonomous driving solutions since 2020 without relying on costly high-definition mapping, a strategy that has provided it with a notable cost advantage. Zhou believes this approach could enable automakers to offer smart electric vehicles priced as low as 150,000 yuan ($21,063.27) in China.