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Uber Sheds Self-Driving Tech Unit, Lands $1B Investment
Confirming earlier reports, Uber Technologies Inc. has made its autonomous vehicle systems unit a separate subsidiary.
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Confirming earlier reports, Uber Technologies Inc. has made its autonomous vehicle systems unit a separate subsidiary.
Valued at about $7.3 billion, the Advanced Technology Group (ATG) will be capitalized at $1 billion through investments from Toyota, Denso and Japan’s SoftBank Vision Fund. The deal is expected to close in the third quarter.
Toyota and Denso will invest a combined $667 million in ATG, while SoftBank will contribute $333 million. Toyota will provide as much as an additional $300 million over the next three years to help further develop and launch automated ride-sharing vehicles and services.
SoftBank and Toyota have previously invested in Uber, with SoftBank becoming the ride-hailing firm’s largest shareholder last year through an $8 billion investment. Toyota invested $500 million in Uber last August.
Media reports note that the latest ATG investments could face challenges from the Committee on Foreign Investment in the United States (CFIUS). The inter-agency regulatory group evaluates foreign funding in startups that could have national security ramifications. CFIUS still is reviewing SoftBank's $2.3 billion investment in General Motors’ Cruise Automation last May.
ATG’s board of directors will consist of six members from Uber and one each from SoftBank and Toyota. Eric Meyhofer, who already heads ATG, has been named CEO of the new company.
The ATG announcement comes ahead of Uber’s planned initial public stock offering early next month. The IPO is expected to raise $10 billion and value the company at as much as $100 billion.
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