The autonomous vehicle industry has long promised to transform transport, offering safer and more convenient roads. Yet many systems struggle beyond carefully mapped urban areas, hampered by reliance on heavy data and fixed environments.

UK startup Wayve is taking a different route. Their self-driving technology learns and adapts much like a human behind the wheel instead of depending solely on predetermined rules or expensive sensor arrays.

This approach has caught the eye of tech giants Microsoft and SoftBank, who are now in talks to invest $2 billion in Wayve. If the deal goes through, it could value the company at roughly $8 billion.

The talks follow Wayve's previous funding rounds, which raised over $1 billion. Recent backers include Nvidia and Uber, signalling increasing faith in Wayve's AI-first approach to autonomous driving.

Founded in 2017 by computer vision expert Alex Kendall, Wayve's mission is to make self-driving scalable and effective across varied environments. Frustrated by the limitations of rule-based systems, Kendall and his team developed technology that learns from experience like humans do. They envision a future where AI-powered vehicles are accessible everywhere, improving both safety and mobility.

Wayve's core innovation lies in its "Embodied AI." Unlike many competitors relying heavily on LiDAR and detailed maps, Wayve focuses on contextual understanding, interpreting what's happening around the vehicle to navigate complex real-world scenarios.

This grants them an edge in flexibility and scalability, especially compared to rivals such as Waymo and Cruise, who face challenges expanding geographically and operationally. Collaborations with Microsoft Azure also give Wayve access to cutting-edge cloud computing and training resources, strengthening its technical lead.

Looking ahead, the proposed $2 billion investment would enable Wayve to accelerate its global rollout, expanding testing in Germany and Japan, alongside its active presence in the UK and US. Partnerships with automakers like Nissan aim to embed Wayve's AI in commercial driver assistance and urban mobility services. The company also plans to expand its presence beyond passenger vehicles into freight and logistics.

UK's Wayve, a rival to Waymo, nears $2B raise from Microsoft and SoftBank -- TFN