IPO watch: Pony AI is going public and Uber wants in

Uber Technologies (NYSE:UBER) continues to make moves in the autonomous driving space. The latest development is that the San Francisco-based company plans to invest in Pony AI’s (PONY) initial public offering.

Sources indicate that Uber (UBER) is looking to buy more than $10 million worth of shares in the IPO, and is considering using Pony AI technology in a partnership outside the U.S.

Earlier in the week, Pony AI said it is targeting a valuation of up to $4.6 billion with the upsized initial public offering. The Guangzhou-based company is now aiming to raise as much as $260 million by offering 20 million American depositary shares priced between $11 and $13 each.

Pony AI, founded in December 2016 by James Peng and Tiancheng Lou, is a global autonomous vehicle technology company with operations in Silicon Valley, Beijing, and Guangzhou. The co-founders, both former software developers for Baidu, established Pony.ai with the goal of advancing autonomous driving technology.

Since its inception, Pony.ai has made significant strides in the industry. In April 2019, the company launched a pilot system in Guangzhou, covering 50 km² for employees and invited affiliates. Later that year, they began a trial in Irvine, California. The company has secured partnerships with major manufacturers like Toyota (TM) and obtained permits for driverless ride-hailing services in Chinese cities.

In 2024, Pony AI teamed up with Alibaba’s (BABA) online mapping unit Amap in an accelerated push to roll out robotaxis in China. In its SEC filing, Pony AI said it currently operates a fleet of over 250 robotaxis, which has accumulated over 33.5 million kilometers of autonomous driving mileage, including over 3.9 million kilometers of driverless mileage.

The company also highlighted that it was among the first in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China (namely Beijing, Shanghai, Guangzhou and Shenzhen), and is the only autonomous driving technology company that has obtained all available regulatory permits essential for providing public-facing robotaxi services within these Tier-1 cities.