Mercedes-Benz will put British start-up Wayve’s self-driving technology into its cars within two years, handing the London AI firm its third major production deal in less than nine months.
The German carmaker has signed a production agreement to integrate Wayve’s AI Driver into future models, allowing cars to handle point-to-point journeys through cities with advanced driver assistance.
Mercedes is the first premium carmaker to sign up to Wayve’s technology, following deals with Nissan and Stellantis, as the British start-up pushes to become a global supplier of autonomous driving software.
The agreement also deepens ties between the two companies after Mercedes invested in Wayve’s $1.2bn (£890m) funding round earlier this year, which valued the London-headquartered firm at $8.6bn.
“This partnership marks the world’s first integration of the Wayve AI Driver in the premium segment”, Mercedes technology chief Jörg Burzer said. “Together with Wayve, we are laying the foundation to roll out this technology worldwide”.
The companies have already integrated Wayve’s software with Mercedes’ existing hardware, operating system and mapping systems, and tested vehicles in Stuttgart, London and San Francisco.
Wayve’s technology differs from many conventional autonomous driving systems because it does not rely on high-definition maps or software specifically programmed for individual cities.
Instead, its AI is trained on driving data to respond to different roads and environments, with the company aiming to use the same underlying system across multiple vehicles and markets.
The company then licenses its technology to manufacturers, allowing it to plug into existing vehicle hardware.
The software is designed to span both assisted driving, where a human remains responsible for the car, and eventually fully autonomous driving.
Wayve racks up car deals #
Mercedes is the latest in a rapid string of carmakers to back the British company.
Wayve has now secured three production agreements in under nine months through deals with Mercedes, Nissan and Stellantis, giving it a route into some of the world’s biggest automotive groups.
The company is also working with Uber on robotaxis and has begun offering supervised public rides in London as it moves from testing towards commercial deployment.
Wayve has raised around $3.2bn to date and was valued at $8.6bn in its latest funding round, with investors including Nvidia, Microsoft, Uber and major carmakers.
Last week it hired former Waymo finance chief Elisa de Martel as its new chief financial officer, another sign the company is preparing for a shift towards large-scale commercial operations.
The deal also comes as Mercedes attempts to cut costs and sharpen its tech offering amid growing pressure on European carmakers.
Mercedes warned on Monday that two German plants could ultimately close unless it reduces its cost disadvantage, saying production in its home market was no longer internationally competitive.
Wayve chief executive Alex Kendall said the companies had achieved a “deep technical alignment”, combining the start-up’s AI with Mercedes’ vehicle engineering and safety systems.
Customers are expected to get access to the first Mercedes vehicles using Wayve’s technology within the next two years.