Didi Global Inc. Seeks $5 Billion Valuation for Autonomous Driving Unit in New Funding Round

Didi Global Inc. is reportedly seeking fresh capital for its autonomous driving unit, aiming for a valuation of approximately $5 billion. The unit, Didi Autonomous Driving, plans to raise several hundred million dollars and is in discussions with potential investors, including a Beijing-based fund, to gauge interest. The unit operates a self-driving fleet of over 200 vehicles that have undergone trials in Beijing, Guangzhou, and Shanghai. Didi unveiled its first concept robotaxi, the Didi Neuron, in April 2023. The proceeds from the funding could be used to further develop autonomous-driving technologies and accelerate the mass production of its robotaxi. Deliberations are ongoing, and the company may still decide against pursuing a deal. Autonomous driving and machine learning have been driving a recent rally in China’s equity markets, influenced by the arrival of startup DeepSeek’s low-cost R1 model and President Xi Jinping’s support for the tech sector. Self-driving entrepreneur James Peng has seen a surge in shares of his robotaxi startup Pony AI Inc., which now has a market value of $5.3 billion. Pony AI’s shares have risen about 16% since its US initial public offering in November. WeRide Inc., which has a robotaxi service agreement with Uber Technologies Inc. in Abu Dhabi, experienced a 135% spike in its shares in mid-February after Nvidia Corp. disclosed an investment in the Chinese firm. Didi Autonomous Driving previously raised $298 million in a Series C funding round in October, led by Guangzhou Automobile Group Co. Other backers include SoftBank Vision Fund, IDG Capital, CCB International, and alternative investment firm CPE.