Nuro's AI-First Shift Attracts Big Bets as AV Sector Evolves

Nuro, a leading developer of self-driving software for delivery and ride-hailing services, has secured $203 million in a Series E funding round, bringing its post-money valuation to $6 billion. The funding round, which includes a second tranche of $97 million announced in August, follows an initial $106 million raised in April this year. Investors in the latest round include existing backer Baillie Gifford, alongside new investors such as Icehouse Ventures, Kindred Ventures, Pledge Ventures, and Nvidia. Uber, which has a broader partnership with Nuro and electric vehicle manufacturer Lucid, also participated in the funding [1].

The valuation represents a 30% decline from Nuro’s $8.6 billion valuation in 2021, when it raised $600 million in a Series D round. This shift reflects broader market conditions and investor focus on artificial intelligence, which has led to lower valuations for many unicorn startups that emerged during the 2021 funding boom. Nuro has raised a total of $2.3 billion to date, with the latest round signaling continued confidence in its AI-first autonomous driving platform and evolving business model [4].

Since 2024, Nuro has undergone a strategic shift, pivoting from operating its own fleet of low-speed delivery bots to licensing its Nuro Driver autonomous technology to third-party automakers and mobility providers. This change follows a period of consolidation within the autonomous vehicle (AV) industry, during which Nuro implemented several rounds of layoffs in 2022 and 2023. The company now focuses on delivering commercial partnerships, including a high-profile collaboration with Uber and Lucid to launch a global robotaxi service. Under the partnership, Uber agreed to invest $300 million in Lucid and purchase at least 20,000 all-electric Lucid Gravity SUVs equipped with Nuro’s self-driving technology over six years [1].

Nuro’s technology is also deeply integrated with hardware and compute infrastructure, particularly through its long-standing partnership with Nvidia. The startup utilizes Nvidia GPUs for large-scale data processing and model training, with its latest compute model built on the Nvidia Drive AGX Thor platform. The strategic alignment with Nvidia underscores the importance of advanced hardware in developing scalable AV systems and supports Nuro’s broader goal of achieving autonomy at a global scale [1].

The Series E funding will enable Nuro to continue expanding its commercial partnerships and advancing its AI-first approach to self-driving technology. The company, which employs approximately 700 people, has also made strides in optimizing its technology for real-world deployment, with operations already underway in three U.S. cities. As the autonomous mobility sector continues to evolve, Nuro’s transition from a vertically integrated model to a technology licensing framework positions it to benefit from growing interest in scalable AV solutions across multiple industries [2].

Source: [1] Nvidia is latest investor to back AV startup Nuro in $203M ... (https://techcrunch.com/2025/08/21/nvidia-is-latest-investor-to-back-av-startup-nuro-in-203m-funding-round/) [2] Nuro Closes $203 Million Series E Financing to Advance Its AI-First Self-Driving Technology and Commercial Partnerships (https://www.nuro.ai/blog/nuro-closes-203-million-series-e-financing-to-advance-its-ai-first-self-driving-technology-and-commercial-partnerships) [3] Self-driving vehicle startup Nuro valued at $6 billion in late- ... (https://www.reuters.com/business/autos-transportation/self-driving-vehicle-startup-nuro-valued-6-billion-late-stage-funding-round-2025-08-21/)