Ride-sharing company Uber is in talks to make an investment in autonomous driving firm Pony AI as part of the upcoming U.S. initial public offering (IPO) according to a report by Bloomberg.
Uber is reportedly planning to buy $10 million in Pony AI shares, although the size of the investment could change before the IPO is priced next week. This would mark the continuation of its push in the autonomous driving sector.
Uber already has a partnership agreement with China’s autonomous driving firm WeRide to offer self-driving rides in Abu Dhabi while also extending a partnership with robotaxi company Waymo and investing in robotaxi startup Wayve.
Pony AI initially planned to offer 15 million American depository shares (ADSs) as part of its IPO before increasing the offering to 20 million ADSs. The shares will be priced between $11 and $13 per share, and the company is looking to attract $260 million in investments. This would give it a valuation of $4.55 billion after previously targeting an $8 billion valuation during the funding round in 2022.
Pony AI was founded in 2016 and manufactures driverless trucks and robotaxis. The company currently has the approval to provide robotaxi services in China’s Beijing, Shenzhen, and Guangzhou.