(Bloomberg) -- Didi Global Inc. is seeking fresh capital for its autonomous driving unit that could value it at about $5 billion, people familiar with the situation said, as Chinese technology firms ride a wave of investor enthusiasm.
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Didi Autonomous Driving plans to raise several hundred million dollars and is in talks with prospective investors including a Beijing-based fund to gauge interest, the people said, asking not to be identified discussing a private matter.
Didi’s autonomous driving unit operates a self-driving fleet of over 200 vehicles that have conducted trials in Beijing, Guangzhou and Shanghai. The Chinese ride-hailing firm unveiled its first concept robotaxi, the Didi Neuron, in April 2023.
Didi may use the proceeds to continue developing autonomous-driving technologies and speed up mass production of its robotaxi, one of the people said. Deliberations are ongoing and the company could still decide against pursuing a deal, the people said.
A representative for Didi didn’t immediately respond to a request seeking comment.
Autonomous driving and machine learning have been at the forefront of a recent rally in China’s equity markets, initiated by the arrival of startup DeepSeek’s low-cost R1 model. President Xi Jinping’s backing has also prompted investors to re-evaluate the nation’s tech companies and their growth prospects.
Self-driving entrepreneur James Peng has become a billionaire after a surge in shares of his robotaxi startup Pony AI Inc., which has a market value of $5.3 billion. Pony AI is up about 16% since its US initial public offering in November.
WeRide Inc., which has a robotaxi service agreement with Uber Technologies Inc. in Abu Dhabi, saw its shares spike 135% in mid-February after Nvidia Corp. disclosed an investment in the Chinese firm.
Didi Autonomous Driving raised $298 million from investors led by Guangzhou Automobile Group Co. in a Series C funding round in October, according to a statement on its official WeChat account. Other backers of the company include SoftBank Vision Fund, IDG Capital, CCB International and alternative investment firm CPE.
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