Toronto Startup Raises $750M for Self-Driving Robotaxis

Self-driving cars are about to become a whole lot smarter, and a Canadian company is leading the charge.

Toronto-based Waabi announced a $750 million funding round on January 28, marking one of the largest investments in autonomous vehicle technology. The startup, founded just five years ago in 2021, has partnered with Uber to deploy up to 25,000 robotaxis using its revolutionary AI system.

What makes Waabi different is its approach to teaching cars how to drive themselves. Instead of logging millions of real-world miles to gather data, the company uses something called physical AI. This technology creates hyper-realistic virtual environments where self-driving systems can practice navigating tricky situations before ever hitting actual roads.

Founder and CEO Raquel Urtasun says this method solves the biggest headaches that have plagued the autonomous vehicle industry. The Waabi Driver software can control perception, decision-making, and vehicle operation all in one integrated system. Even better, the same AI works across different types of vehicles, from massive freight trucks to passenger cars.

The partnership with Uber represents a major milestone for both companies. Uber CEO Dara Khosrowshahi called it an important moment for the entire autonomous vehicle industry. The deployment of robotaxis will happen in stages, pending development milestones and regulatory approvals, ensuring safety remains the top priority.

Waabi isn't just thinking about city rides. The company plans to use this funding to expand its autonomous trucking operations, which could revolutionize freight transport on highways. Long-haul trucking faces driver shortages and safety challenges that self-driving technology could help address.

The Ripple Effect

The investment signals massive confidence in Canadian innovation. Over a dozen major investors joined the funding round, including automotive giants like Volvo and Porsche, financial powerhouses like BlackRock, and Canadian institutions like BMO and Export Development Canada.

This international backing shows that solutions developed in Toronto are ready to compete on the global stage. The technology could make transportation safer, more accessible, and more efficient for millions of people. Fewer accidents caused by human error, more mobility options for people who can't drive, and reduced emissions from optimized routing all become possible.

For the 25,000 potential robotaxis alone, that's 25,000 vehicles that could operate 24/7 without fatigue, serving communities that lack adequate public transit. The freight applications could keep goods moving smoothly while addressing the trucking industry's chronic driver shortage.

The future of getting from point A to point B just got a billion-dollar boost, and it's being built right here in Canada.