Self-driving technology is one of the hottest investment sectors today, with billions of dollars flowing into research, development, and deployment. Companies are racing to build autonomous vehicles (AVs) that are safer, smarter, and more efficient. But who is actually spending the most money on AV technology?
1. Waymo (Alphabet’s AV subsidiary) has raised over $5.5 billion in external funding
Waymo, a subsidiary of Alphabet (Google’s parent company), is one of the most well-funded self-driving companies in the world. While Google initially funded Waymo’s early development, the company later raised external investments to accelerate commercialization.
Waymo is focusing on self-driving taxis and delivery services, primarily operating in Phoenix and expanding to other cities. Despite its massive funding, profitability remains a challenge, and scaling operations is slow due to high costs and regulatory hurdles.
Takeaway: Investors interested in Waymo should watch for regulatory approvals and expansion plans. If Waymo can successfully scale its robotaxi services, its valuation could skyrocket.
2. Cruise (GM’s AV division) has received more than $15 billion in total investment
Cruise, owned by General Motors, is one of the most aggressive players in AV investment. It has raised significant funding from GM, SoftBank, Honda, and other major investors.
Cruise has been testing its self-driving cars in San Francisco and plans to expand nationwide. However, it has faced technical issues and regulatory setbacks. The company recently had to pause operations due to safety concerns.
Takeaway: Investors should monitor Cruise’s ability to resolve safety concerns and secure regulatory approvals. If it can overcome these challenges, its funding advantage could help it dominate the market.
3. Tesla has invested over $10 billion in self-driving technology R&D
Tesla takes a different approach to self-driving technology than its competitors. Instead of relying on expensive LiDAR sensors, Tesla uses cameras and AI to power its Full Self-Driving (FSD) software.
Despite its massive investment in R&D, Tesla’s FSD technology is still considered Level 2 autonomy, meaning human supervision is required. Regulatory approval for full autonomy is a major hurdle.
Takeaway: Tesla’s self-driving technology could be a game-changer if it gets regulatory approval. Investors should keep an eye on software updates and real-world performance.
4. Amazon’s Zoox has been acquired for $1.2 billion and continues to receive funding from Amazon
Amazon acquired Zoox, a startup focused on robotaxis, in 2020 for $1.2 billion. Since then, Amazon has continued funding the company’s development.
Zoox is developing fully autonomous, purpose-built robotaxis rather than modifying existing vehicles. This approach is more ambitious but also more challenging.
Takeaway: Amazon’s support gives Zoox an advantage, but scaling production and obtaining regulatory approvals remain challenges. Investors should monitor Zoox’s testing progress and potential partnerships.
5. Apple’s Project Titan has spent over $10 billion on AV development since its inception
Apple has been secretly working on an autonomous vehicle project, known as Project Titan, for years. The company has reportedly invested over $10 billion in developing its own self-driving car.
Despite significant investment, Apple has not revealed concrete plans for commercializing its AV technology. The project has seen leadership changes and strategic shifts.
Takeaway: Apple’s entry into the AV market could shake up the industry, but its long-term strategy remains unclear. Investors should watch for official announcements and partnerships.
6. Baidu’s Apollo program has accumulated over $3 billion in investments
Baidu, often called the “Google of China,” has been investing heavily in autonomous driving through its Apollo program. The company has secured over $3 billion in funding to develop self-driving technology.
Baidu has partnered with multiple Chinese automakers and is testing robotaxis in several cities. Its strong backing from the Chinese government gives it a unique advantage.
Takeaway: Baidu’s AV progress could be a major player in China’s smart transportation future. Investors should monitor partnerships and regulatory developments in China.
7. Intel’s Mobileye went public in 2022, raising $861 million in its IPO
Intel’s Mobileye is a leader in AV sensor technology and self-driving software. After years of being a subsidiary, Mobileye went public in 2022, raising $861 million.
Mobileye provides AV technology to multiple automakers rather than developing its own self-driving cars. This business model allows it to scale without the high costs of building vehicles.
Takeaway: Mobileye’s strong technology and partnerships make it a key AV player. Investors should watch for new contracts and advancements in sensor technology.
8. Aurora Innovation has secured over $3.1 billion in funding
Aurora, founded by former Google and Tesla engineers, is focused on autonomous trucking and ride-hailing. It has raised over $3.1 billion from major investors, including Amazon.
Unlike other AV companies focusing on passenger vehicles, Aurora is prioritizing long-haul trucking, which has clearer business applications and fewer regulatory barriers.
Takeaway: Aurora’s focus on trucking could make it a major winner in the AV space. Investors should monitor its partnerships with logistics companies.
9. Nuro has raised over $2.1 billion in funding
Nuro specializes in autonomous delivery vehicles rather than passenger cars. It has raised more than $2.1 billion from investors including SoftBank and Google Ventures.
Nuro’s delivery robots are already operating in select markets, making it one of the first AV companies with real commercial use cases.
Takeaway: Nuro’s focus on delivery gives it an advantage over companies struggling with robotaxi approvals. Investors should track expansion plans and major retail partnerships.
10. SoftBank Vision Fund has invested $2.25 billion in Cruise
SoftBank, through its Vision Fund, has heavily invested in self-driving technology. It contributed $2.25 billion to GM’s Cruise, betting big on AVs as a long-term technology.
SoftBank has a track record of making high-risk, high-reward investments. Its support for Cruise signals strong confidence in self-driving cars.
Takeaway: SoftBank’s investments can boost Cruise’s growth, but the company’s recent safety issues could slow progress. Investors should be cautious but optimistic.
11. Didi Chuxing’s AV unit has received over $500 million in funding
Didi, China’s largest ride-hailing company, has raised over $500 million for its autonomous vehicle division. The company plans to integrate AVs into its ride-hailing network.
Didi’s AV unit is still in the early stages, but its access to millions of drivers and riders gives it a strategic advantage.
Takeaway: Investors should watch how Didi balances regulatory challenges with AV development. Its existing customer base could help accelerate adoption.
12. Toyota has invested over $4 billion in self-driving R&D and partnerships
Toyota has been steadily increasing its investment in self-driving technology, committing over $4 billion to AV research, development, and strategic partnerships. The company’s primary AV division, Woven Planet, focuses on mobility solutions, automation, and AI-driven driving technologies.
Toyota’s approach differs from others because it is integrating self-driving features into its existing vehicle lineup rather than launching a standalone AV brand. This allows Toyota to scale self-driving technology incrementally while maintaining profitability.
Takeaway: Toyota’s cautious but steady investment in AVs makes it a safe bet in the autonomous driving race. Investors should watch for updates from Woven Planet and potential expansion into ride-sharing or commercial AV applications.
13. Uber sold its AV unit (ATG) to Aurora in a deal valued at $4 billion while investing $400 million in Aurora
Uber once had grand ambitions in the self-driving space through its Advanced Technologies Group (ATG). However, due to high development costs and regulatory challenges, Uber decided to sell ATG to Aurora in a deal valued at $4 billion. Despite the sale, Uber remains invested in the AV industry by injecting $400 million into Aurora.
Uber’s decision to offload its AV division suggests that the company is prioritizing profitability over long-term AV development. However, its partnership with Aurora allows it to remain in the game without the heavy costs of in-house development.
Takeaway: This move shows the financial strain of AV development. Investors should watch Aurora’s progress and Uber’s future AV partnerships, as they could still be key players in self-driving ride-hailing services.
14. Ford and Volkswagen’s joint venture, Argo AI, was valued at $7 billion before being shut down in 2022
Ford and Volkswagen made headlines when they invested heavily in Argo AI, valuing the company at $7 billion. However, in 2022, both automakers decided to shut down Argo AI, citing difficulties in achieving full autonomy within a viable business model.
This highlights one of the biggest risks in AV investments: even well-funded startups can struggle with long-term sustainability. Ford and Volkswagen are now shifting their focus to driver-assist technology instead of full autonomy.
Takeaway: Investors should be cautious when betting on AV startups. Even billion-dollar valuations don’t guarantee success. Instead, it may be smarter to invest in companies focusing on incremental AV adoption rather than full autonomy.
15. General Motors (GM) has committed $35 billion to electric and autonomous vehicle development
GM has made one of the largest financial commitments to AVs and electric vehicles (EVs), pledging a staggering $35 billion. A significant portion of this funding is directed toward Cruise, its AV subsidiary, which aims to roll out self-driving taxis and delivery services.
Despite this major investment, GM faces hurdles such as safety concerns and regulatory barriers. Cruise’s recent setbacks in San Francisco have led to operational pauses, highlighting the complexities of scaling AV services.
Takeaway: GM’s massive investment shows confidence in the AV market, but execution remains uncertain. Investors should track regulatory updates and how GM navigates safety concerns.
16. Hyundai has invested $4 billion in self-driving technology through its Motional joint venture with Aptiv
Hyundai, in partnership with Aptiv, created Motional—a company dedicated to developing self-driving ride-hailing technology. The $4 billion investment is aimed at making Level 4 autonomous vehicles a reality.
Motional has secured deals with ride-hailing companies like Lyft, meaning its technology is already being tested in real-world applications. The company is currently operating in Las Vegas, where it is testing robotaxi services.
Takeaway: Hyundai’s Motional could be a strong player in the robotaxi market. Investors should watch for its expansion into new cities and regulatory approvals.
17. NVIDIA has spent over $1 billion on AV and AI-powered driving solutions
NVIDIA is not building self-driving cars, but it is one of the most important technology providers in the industry. The company has spent over $1 billion developing AI-powered driving solutions and AV hardware, such as its Drive platform.
Many AV companies, including Tesla and Waymo, rely on NVIDIA’s AI chips and computing systems for their autonomous driving software. As the AV industry grows, NVIDIA stands to benefit significantly.
Takeaway: Investing in AV component suppliers like NVIDIA could be a smarter move than investing in AV companies themselves. NVIDIA’s technology is essential for the industry’s growth, making it a strong long-term bet.
18. Honda has invested $2.75 billion in Cruise to develop autonomous technology
Honda has taken a strategic approach to AVs by partnering with General Motors and investing $2.75 billion into Cruise. This allows Honda to leverage GM’s technology while minimizing its own R&D costs.
Honda plans to integrate Cruise’s self-driving technology into its future vehicles, potentially launching AV ride-hailing services in Japan. However, Cruise’s recent safety issues could delay these plans.
Takeaway: Honda’s reliance on Cruise means its AV progress is tied to GM’s success. Investors should track Cruise’s performance and Honda’s long-term AV strategy.
19. BMW and Daimler (Mercedes-Benz) committed $1 billion to their AV partnership before shifting focus
BMW and Daimler initially teamed up to develop self-driving technology, investing $1 billion into their joint effort. However, due to the complexity and cost of full autonomy, both companies eventually scaled back their ambitions.
Now, both automakers are focusing on advanced driver-assist systems (ADAS) rather than fully autonomous vehicles. This reflects a broader trend in the industry—many companies are shifting away from Level 5 autonomy toward safer, more gradual improvements.
Takeaway: The failure of this partnership is a warning sign for AV investors. Fully autonomous driving is incredibly difficult to achieve. Companies focusing on incremental automation may be more sustainable investments.
20. China’s Pony.ai has raised more than $1 billion in funding from Toyota and others
Pony.ai, one of China’s leading AV startups, has raised over $1 billion from investors, including Toyota. The company is focused on developing robotaxis and self-driving trucks.
Pony.ai has already launched pilot programs in China and the U.S. However, regulatory hurdles remain a challenge, as the company has faced license revocations due to safety concerns.
Takeaway: Pony.ai’s funding gives it strong potential, but regulatory setbacks could limit its growth. Investors should watch for its ability to regain government approvals.
21. Volkswagen has invested $2.6 billion into Argo AI before its dissolution
Volkswagen was one of the biggest backers of Argo AI, investing $2.6 billion into the now-defunct startup. This highlights the financial risks involved in the AV industry.
Following Argo AI’s shutdown, Volkswagen has redirected its efforts toward developing driver-assist technologies rather than full autonomy.
Takeaway: This case demonstrates why investors should be cautious about AV startups. Even large investments from established automakers don’t guarantee success.
22. Huawei has pledged $1 billion annually to AV and smart car technology
Huawei has been aggressively investing in self-driving and smart car technology, pledging $1 billion annually. Unlike traditional AV companies, Huawei is focusing on AI-powered driving solutions and software rather than building entire vehicles.
Huawei’s AV technology is being integrated into cars from Chinese automakers, making it a key supplier in the industry.
Takeaway: Huawei’s investment signals strong AV growth in China. Investors should watch how its technology competes with NVIDIA and Mobileye.
23. SAIC Motors has committed over $5 billion in AV and electrification development
SAIC Motors, China’s largest automaker, has been heavily investing in autonomous driving and electric vehicle technology. The company has committed over $5 billion toward the development of AVs and smart mobility solutions.
Unlike some companies focusing solely on AVs, SAIC is integrating autonomous technology into its broader electrification strategy. It has launched various initiatives, including partnerships with AV startups and the development of smart city infrastructure to support autonomous driving.
Takeaway: SAIC’s strategy aligns with China’s national push for smart transportation. Investors should watch how SAIC leverages government policies and expands its AV fleet.
24. Baidu’s Apollo program has over 210 industry partners supporting its AV development
Baidu’s Apollo program is not just about self-driving cars—it is an entire ecosystem for autonomous driving technology. With over 210 industry partners, including automakers, tech companies, and city planners, Baidu is positioning itself as a leader in China’s AV sector.
Apollo provides open-source AV software and cloud-based driving solutions, enabling automakers to integrate self-driving capabilities into their vehicles. The program has already launched robotaxi services in multiple cities across China.
Takeaway: Baidu’s partnership-driven model makes it a scalable AV player. Investors should monitor its regulatory approvals and expansion beyond China.
25. Lyft sold its Level 5 self-driving division to Toyota’s Woven Planet for $550 million
Lyft once aimed to develop its own AV technology but later decided to exit the market by selling its Level 5 self-driving unit to Toyota’s Woven Planet for $550 million.
This move reflects the growing trend of ride-hailing companies partnering with AV developers rather than building the technology in-house. Lyft now focuses on integrating third-party AV solutions into its ride-hailing platform instead.
Takeaway: Ride-hailing companies may not be the best AV investment targets, as they seem to be shifting toward partnerships rather than in-house development. Investors should look at companies like Woven Planet, which are actively building AV tech.
26. Intel acquired Mobileye for $15.3 billion in 2017, making it one of the largest AV acquisitions
Intel’s purchase of Mobileye for $15.3 billion was a game-changer in the AV industry. Mobileye specializes in AV sensors, AI-powered vision systems, and autonomous driving software.
Since the acquisition, Mobileye has expanded its partnerships with global automakers and even launched its own AV pilot programs. Its recent IPO shows strong investor interest in AV component suppliers.
Takeaway: Mobileye is a great example of how AV hardware and software providers can be more sustainable investments than AV car manufacturers. Investors should track Mobileye’s expansion and partnerships.
27. China’s AV startups (Pony.ai, WeRide, and AutoX) have collectively raised over $3 billion in funding
China is becoming a global hub for AV innovation, with startups like Pony.ai, WeRide, and AutoX collectively raising over $3 billion in funding. These companies are focusing on robotaxis, autonomous logistics, and commercial fleet applications.
However, Chinese AV startups face unique regulatory challenges, as the government is highly involved in approving autonomous vehicle operations. Some companies have had to pause testing due to safety concerns.
Takeaway: The Chinese AV market has massive potential, but regulatory risks remain high. Investors should focus on companies with strong government backing and partnerships with major automakers.
28. Rivian has raised more than $10.5 billion for electric and autonomous vehicle development
Rivian is primarily known for its electric trucks and SUVs, but it is also developing autonomous driving features. The company has raised over $10.5 billion in funding, with major investments from Amazon and Ford.
Rivian’s focus on electric and semi-autonomous technology makes it a key player in the future of smart transportation. Its partnership with Amazon for autonomous delivery vans is particularly promising.
Takeaway: While Rivian is not a pure AV company, its strong funding and commercial partnerships make it a good investment prospect. Investors should watch its AV technology development alongside its EV progress.
29. Alphabet’s Waymo is valued at around $30 billion, according to recent estimates
Waymo’s valuation has climbed to approximately $30 billion, making it one of the most valuable AV companies in the world. Despite its high valuation, the company has yet to turn a profit, as scaling robotaxi services remains expensive and challenging.
Waymo’s long-term success depends on regulatory approvals, fleet expansion, and continued improvements in self-driving AI. While it leads the AV industry in technology, its business model is still evolving.
Takeaway: Waymo’s high valuation shows strong investor confidence, but profitability remains uncertain. Investors should watch how it monetizes its self-driving technology.
30. The global AV market is projected to exceed $600 billion in cumulative investments by 2030
The autonomous vehicle industry is set to receive over $600 billion in investments by 2030, according to market forecasts. This includes funding for self-driving cars, commercial AV fleets, logistics automation, and smart city infrastructure.
The key drivers of this growth include advancements in AI, the expansion of robotaxi services, the rise of autonomous trucking, and increased government funding for AV-friendly regulations. However, regulatory challenges, safety concerns, and technology limitations still pose risks.
Takeaway: The AV market will continue to grow, but investors need to be strategic. Companies focusing on practical, short-term AV applications—like logistics and delivery—may see faster returns than those betting on full autonomy.
wrapping it up
The self-driving industry is moving fast, but full autonomy is still a long-term goal. While massive investments have been made, and many breakthroughs have been achieved, the path to widespread adoption remains filled with challenges.
Companies are pouring billions into the development of AVs, but regulatory hurdles, safety concerns, and scalability issues continue to slow down progress.
