Autonomous vehicle testing startup Applied Intuition in talks to raise funding at $15 billion valuation

Applied Intuition, a lesser-known player in autonomous vehicle testing, is reportedly in discussions with investors to raise capital at a $15 billion valuation—more than double its valuation from a year ago. The Information shared this update, citing a source with direct knowledge of the talks. Kleiner Perkins, an existing investor, is said to be leading the round.

The potential fundraising follows a strong year for the Mountain View, California-based company. By the end of last year, Applied Intuition had reached about $400 million in annual recurring revenue (ARR), doubling its figure from the previous year, according to another source and a potential investor.

“Applied Intuition, an eight-year-old developer of simulation software for training self-driving vehicles, is in talks with investors to raise capital at a $15 billion valuation, more than double its valuation from a year ago, according to a person with direct knowledge of the discussions. Existing investor Kleiner Perkins is in talks to lead the round,” The Information reported.

Applied Intuition first caught our attention in 2020 when the startup reached unicorn status with a $1.25 billion valuation after securing $125 million in Series C funding co-led by Lux Capital and Andreessen Horowitz.

While companies like Tesla and Waymo dominate headlines, Applied Intuition operates behind the scenes, providing simulation software that helps train self-driving vehicles. Its software infrastructure is designed to help companies safely develop, test, and deploy autonomous vehicles at scale. The suite of tools is built for companies of all sizes, offering a comprehensive solution for testing and speeding up autonomous vehicle development.

Applied Intuition

Founded in 2017 by Qasar Younis and Peter Ludwig, Applied Intuition positions itself as a connector between Silicon Valley and traditional automakers. Younis, who previously co-founded a startup acquired by Google and served as the COO of Y Combinator, studied at the General Motors Institute of Technology in Michigan. Ludwig earned both his undergraduate and master’s degrees from the University of Michigan. Both founders later moved to California and collaborated to modernize software solutions in the automotive sector, aiming to simplify the integration of autonomous features in vehicles.

Younis explained the challenge many automotive engineers face, saying, “If you’re an engineer at a global OEM, let’s say you work at Hyundai in South Korea, it should be very easy for you to log in on day one and have access to tools. That’s not how it works for an automotive engineer today. It could be months before you have your engineering setup.”

As Applied Intuition looks to expand its impact and secure additional funding, the company is positioning itself as an essential player in the push to develop autonomous driving technology more efficiently and at scale.