Microsoft and SoftBank in talks to invest $2 billion in UK self-driving startup Wayve

British autonomous driving startup Wayve is in advanced talks with Microsoft and SoftBank for a potential $2 billion funding round that could value the company at around $8 billion, according to a report from the Financial Times. The move underscores how big tech and major investors are racing to secure positions in the emerging field of embodied AI — technology that teaches machines to interact with the physical world.

Wayve, founded in 2017 by a group of Cambridge engineers, has developed a self-learning AI system that can teach itself to drive using just a computer and a single camera. Instead of relying on heavily pre-mapped environments or specialized hardware, Wayve’s approach focuses on reinforcement learning, allowing its AI to “learn by doing.” The result is a system that can adapt to unpredictable real-world scenarios, from sudden pedestrian crossings to unexpected road conditions.

Wayve in Talks to Raise $2B in Funding From SoftBank and Microsoft

The talks come as global investors pour billions into startups advancing artificial intelligence beyond text and image generation. In September, Nvidia reportedly signed a letter of intent to invest $500 million in Wayve, signaling its confidence in the company’s approach to self-driving intelligence. Wayve already counts SoftBank, Nvidia, and Uber among its backers, having raised over $1 billion last year — a round that also included an undisclosed investment from Uber in 2024.

Wayve’s technology is currently integrated into six vehicle platforms, including electric models such as the Jaguar I-PACE and Ford Mustang Mach-E. Its software continuously improves through over-the-air updates, giving the company an edge in a sector where real-world data and iterative learning are key.

Based in London, Wayve operates in both the UK and the United States, with active testing programs underway in Germany and Japan. The company declined to comment on the funding talks, and neither Microsoft nor SoftBank has responded publicly.

The potential deal highlights a growing shift in AI investment focus — from digital systems that process language to embodied systems that perceive, learn, and act in the physical world. For Wayve, the backing of Microsoft and SoftBank could provide the capital and infrastructure it needs to scale its autonomous technology into a commercial reality.