Nuro has raised $106 million in fresh Series E funding to expand its pivot from building delivery robots to licensing its autonomous driving technology. With this round, the California-based startup’s total capital now stands at $2.2 billion. However, the company’s valuation has dropped to $6 billion—down from $8.6 billion after its $600 million Series D in 2021. While that may seem like a red flag, most startups are experiencing similar valuation resets following the funding boom of recent years.
More crucially, Nuro’s business model has changed. Rather than operating its own fleet of compact, passenger-less delivery vehicles—which were once used in partnerships with companies like Domino’s—Nuro is shifting toward a leaner, more scalable approach. The startup now aims to license its AI-powered autonomous driving technology to automotive OEMs, ride-hailing services, and commercial fleet operators.
This change in direction was first reported in late 2024, following a period of restructuring, multiple layoffs, and the suspension of its in-house vehicle production. With hardware proving too capital-intensive, Nuro doubled down on perfecting its self-driving software—a decision it believes will deliver long-term value.
AI Advancements, Extended Runway, and Investor Confidence
Following its pivot, Nuro has ramped up testing efforts in states like California and Texas. According to co-founder Dave Ferguson, recent AI breakthroughs have significantly extended the company’s financial runway—from just 1.5 years to 3.5 years. While this new funding doesn’t lengthen the runway further, it is earmarked to support commercial expansion through 2027.
The funding came largely from existing backers, signaling ongoing investor confidence. T. Rowe Price Associates, Fidelity Management & Research, Tiger Global, Greylock Partners, and XN LP all participated. Nuro has also kept strong ties with strategic partners such as Uber and Toyota, thanks in part to Toyota’s venture arm, Woven Capital.
Jiajun Zhu, Nuro’s CEO and co-founder, emphasized the company’s advantage in deploying Level 4 autonomous tech without safety drivers. He believes Nuro’s focus on licensing gives it a strong position in the race toward full autonomy.
“We’re excited to see strong investor enthusiasm for our Series E,” Zhu said. “Our technology, years of experience, and licensing strategy uniquely position us to help automakers, mobility platforms, and commercial fleets speed up their autonomy roadmaps.”
This puts Nuro in direct competition with companies like the UK’s Wayve, another startup offering plug-and-play AI autonomy solutions for vehicles ranging from personal cars to robotaxis.
