Autonomous trucking startup Waabi raises $750 million to expand into robotaxis

Waabi, an emerging player in the autonomous trucking sector, announced on Wednesday that it has successfully raised $750 million in funding. This significant investment will allow the company to collaborate with Uber in deploying driverless technology in light-duty vehicles tailored for robotaxi services. The Series C funding round, spearheaded by Khosla Ventures and G2 Venture Partners, stands out as one of the largest capital raises by a Canadian tech startup. Currently ranked 35th on CNBC's 2025 Disruptor 50 list, Waabi operates primarily out of Toronto, with additional facilities in Texas. Raquel Urtasun, the founder and CEO of Waabi, shared insights with CNBC on how this new influx of capital will facilitate the development of their "physical AI," enabling the swift adaptation of driverless systems to diverse locations and conditions while ensuring high safety standards. Notably, Uber has also pledged an additional $250 million investment contingent on future milestones, allowing Waabi to exclusively deploy a fleet of at least 25,000 autonomous vehicles through Uber's ride-hailing platform. Urtasun, who previously led efforts in autonomous vehicle technology at Uber's Advanced Technologies Group, expressed her excitement about the progress the industry is making. "After 16 years in self-driving, it’s incredible to see the scalability we are achieving now," she stated. However, specific vehicle models that will incorporate Waabi's technology have yet to be disclosed. Historically, Waabi has focused on developing driverless trucks in partnership with major automakers like Volvo and Peterbilt. They are now transitioning to a "driver as a service" model, according to Urtasun, who is also a computer science professor at the University of Toronto. Vinod Khosla, the founder of Khosla Ventures, highlighted Waabi's efficient approach to capital and its strategic advantages over earlier players in the autonomous vehicle space. Urtasun emphasized the startup's commitment to safety and advanced technology, stating, "We utilize a combination of sensors—lidar, cameras, and radar—each with unique characteristics. This multi-sensor approach enhances robustness and reliability." While the competition remains fierce, with other companies such as Aurora, Kodiak AI, Bot Auto, and Tesla also racing to develop autonomous trucking solutions, Waabi is making strides in the burgeoning robotaxi market as well. Competitors like Waymo, Nuro, WeRide, and automotive giants such as Tesla and Rivian are also in the fray, intensifying the race for dominance in driverless systems. Waabi's Series C round drew interest from several notable investors, including Nvidia's venture capital arm NVentures, Volvo Group Venture Capital, and Porsche Automobil Holding SE, among others.