Nvidia invests in China’s driverless startup WeRide, cuts Arm stake, and exits Serve Robotics & SoundHound AI in major portfolio shift

Nvidia is shaking up its investment portfolio, making some big moves in the AI and autonomous driving space. The chip giant reduced its stake in British chipmaker Arm Holdings by 44% and completely pulled out of Serve Robotics and SoundHound AI, according to a 13F-HR regulatory filing released on Friday.

One of the biggest standouts? Nvidia’s new bet on WeRide, a China-based self-driving startup. The company disclosed holding 1.7 million shares in WeRide as of the quarter ending December 31. The news sent WeRide’s stock soaring 96% in premarket trading, reflecting the market’s confidence in Nvidia’s latest investment.

“The Santa Clara, California-based company reported new holdings in the quarter ended December 31, including 1.7 million shares in China’s self-driving startup WeRide Inc, sending its shares up by 96% in premarket trading, Reuters reported.

The news comes just three months after WeRide made its public debut, raising $440.5 million through its U.S. IPO and a private placement.

The latest filing also revealed Nvidia’s 1.2 million shares in AI cloud firm Nebius Group, which saw its stock climb 6% following the disclosure.

Meanwhile, Nvidia significantly reduced its position in Arm Holdings, trimming its stake by 43.8% to 1.1 million shares. The move comes after Nvidia previously attempted to acquire Arm in a high-profile deal that was eventually scrapped due to regulatory concerns.

As part of its portfolio shift, Nvidia exited Serve Robotics, the sidewalk delivery robot startup, which led to a 31% drop in Serve’s stock. The AI chip giant also pulled its stake from Nano-X Imaging, an Israel-based medtech company, causing a 4% decline in premarket trading.

Another company feeling the impact of Nvidia’s exit is SoundHound AI, the voice assistant developer. Its stock took a 10% hit following the disclosure.

Nvidia’s latest investments and exits reflect a broader shift in strategy, with the company doubling down on AI-driven mobility while stepping away from certain automation and MedTech bets. The market’s reaction, particularly to WeRide, suggests Nvidia may be onto something big in the driverless tech space.

Founded in 2017 by Qing Lu, Tony Han, and Yan Li, WeRide made history as China’s first L4 autonomous driving startup. The company has attracted backing from major players like the Renault-Nissan-Mitsubishi alliance and GAC Group, reinforcing its position in the self-driving space.

WeRide’s 200+ team includes engineers and executives who have worked at Google, Facebook, Microsoft, and Baidu, bringing industry expertise to its AI-driven mobility strategy. Before going public, the startup secured $1.442 billion in funding through 11 rounds, with backing from 41 investors, including The Carlyle Group and Idinvest Partners.

WeRide