Nuro is testing its autonomous vehicle tech on Tokyo’s streets

Nuro, a startup from Silicon Valley backed by prominent investors including Nvidia, Uber, and Softbank, is stepping into the dynamic streets of Japan to test its autonomous vehicle technology. The company has initiated trials with Toyota Prius cars outfitted with its self-driving software, accompanied by human safety operators ready to take control if needed. This venture represents Nuro's first international expansion following a significant pivot in its business strategy two years ago. The testing phase in Tokyo presents unique challenges, including adapting to left-side driving, dense urban traffic, and distinct road signs and lane markings that differ from those in the U.S. Since establishing its Tokyo office last August, Nuro has not disclosed the number of vehicles involved in this testing or a timeline for when it might operate without human oversight. However, the company hinted at future expansions in a recent blog post, emphasizing that these operations are just the beginning of a broader global deployment. Founded in 2016 by former Google self-driving engineers Dave Ferguson and Jiajun Zhu, Nuro initially aimed to launch a fleet of low-speed delivery bots. After attracting a notable $940 million investment from the Softbank Vision Fund in 2019, the company faced challenges due to high development costs and market consolidation, prompting significant staff reductions and a reevaluation of its business model. In a strategic shift in 2024, Nuro abandoned its initial focus on low-speed bots and opted to license its technology to automotive manufacturers and mobility service providers. The company’s autonomous driving framework leverages an end-to-end AI model capable of learning from its environment as it operates. This innovative approach, referred to as "zero-shot autonomous driving," enables Nuro's software to navigate Tokyo's roads without prior training on local driving behaviors, according to details shared in their blog. Nuro’s commitment to safety remains paramount, as it conducts closed-course tests for each iteration of its universal autonomy model while simulating various scenarios. During trials on public roads, vehicles operate in a "shadow mode" where the software runs without controlling the vehicle, allowing the team to assess performance before full autonomy is achieved. With recent funding successes, including a $203 million Series E round backed by Baillie Gifford and new investor partnerships, Nuro is gaining traction in the competitive self-driving landscape. Uber is also poised to contribute significantly to Nuro’s funding as part of a broader collaboration with electric vehicle manufacturer Lucid.