Nuro Secures $203 Million in Series E Funding Round
Nuro Inc., a self-driving vehicle startup, has successfully closed a $203 million Series E funding round, elevating its valuation to $6 billion. The latest round attracted both new and returning investors, including Baillie Gifford.
This financing round comes after an initial $106 million tranche in April, indicating a strong resurgence of investor interest in the autonomous vehicle industry. Nvidia and Uber joined the latest series as new backers, alongside Icehouse Ventures, Kindred Ventures, and Pledge Ventures. Baillie Gifford reaffirmed their support with a $70 million contribution, joining returning investors such as T. Rowe Price, Fidelity Management & Research, and Tiger Global.
Nuro’s total funding now stands at $2.3 billion, with a valuation of $6 billion.
Strategic Shift in Nuro's Business Model
Founded in 2016 by former Google employees Dave Ferguson and Jiajun Zhu, who previously worked on the self-driving project now known as Waymo, Nuro initially focused on developing autonomous robots for delivery services. However, in 2024, the company pivoted to licensing its Nuro Driver platform to automakers, partnering with ride-hailing services and commercial fleets, moving away from its original delivery robot focus.
Navigating Challenges and Expanding Technical Capabilities
Since 2022, the self-driving company has navigated significant market headwinds, including layoffs in 2022 and 2023 when investor enthusiasm for self-driving car technology waned. Despite these challenges, Nuro has expanded its technological capabilities, evolving from a Level 2 driver-assisted technology to its current Level 4 capabilities. This advancement enables the vehicle to handle most driving scenarios without human intervention, except in situations beyond the system's control.
Partnership with Uber and Lucid for Global Robotaxi Service
Last month, Nuro partnered with Uber and Lucid to launch a global robotaxi service. The partnership details include Uber purchasing over 20,000 Lucid Gravity SUVs equipped with Nuro’s autonomous software over the next six years, starting in 2026. Uber also invested $300 million in Lucid, with a portion of these funds earmarked for Nuro’s Series E funding and additional financing tied to the achievement of specific milestones.
Collaboration with Nvidia
Nvidia's investment in Nuro follows a series of collaborations between the two companies. Nuro utilizes Nvidia’s GPUs and the Drive AGX Thor platform for large-scale data processing and model training, enhancing the performance and reliability of its autonomous driving systems.
Future Vision and Global Expansion
Nuro co-founder and President Ferguson stated that the company currently employs around 700 people and aims to forge new commercial partnerships to globalize its autonomous technology. The company’s total funding raised to date is $2.3 billion, with its current valuation at $6 billion, a decrease from $8.3 billion in 2021.
The Global Robotaxi Market: Tesla vs. Nuro
According to an analysis by ARK Invest, the global robotaxi market is projected to reach approximately $10 trillion within the next decade. Tesla and Nuro are positioning themselves to capture significant shares of this market with distinct strategies. Tesla, which launched its robotaxi service in June 2025, employs a vertically integrated approach. Its current fleet, composed of Model Y vehicles, recently introduced safety monitors and rapidly expanded its operating area, surpassing Waymo’s coverage in Austin within weeks.
ARK Invest's analysis highlights Tesla’s significant vehicle production capacity, exceeding 5,000 cars per day, and a data advantage that is approximately 40 times greater than its competitors. These advantages could enable Tesla to scale its operations more rapidly.
In contrast, Nuro has adopted a partner-centric approach, leveraging its collaborations with Uber and Lucid. The company plans to deploy at least 20,000 Lucid Gravity SUVs next year. Both companies face regulatory hurdles as they expand. Tesla has initiated launches in Austin but may encounter obstacles as it expands into other states beyond Austin and San Francisco. Nuro's reliance on Uber's partnership may provide a smoother path through the regulatory landscape, given Uber’s established lobbying presence and existing city partnerships.
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