DeepRoute Raises $100 Million to Compete with Tesla FSD in China

The Chinese startup DeepRoute.ai, based in Shenzhen and specializing in autonomous driving technology, has raised $100 million from Great Wall Motor to integrate its autonomous driving systems into as many vehicles in China as possible before Tesla’s market entry next year, according to Reuters.

While DeepRoute does not officially disclose its automotive sponsor, Chinese media reports and a company press release point to Great Wall Motor — one of the largest automakers in the country, with new car sales reaching 970,612 units in the first 10 months of the year. Great Wall Motor is also expanding its presence in Europe, where it collaborates with BMW to produce the next-generation Mini EV hatchback.

Initially backed by Alibaba, DeepRoute focused on developing Level 4 robotaxi solutions but shifted its strategy in 2022 to focus on creating Level 2+ and Level 3 driving technologies. According to SAE classifications, Level 4 involves full autonomous driving under certain conditions without human intervention, while Levels 2+ and 3 provide advanced driver assistance, requiring periodic supervision and intervention.

A DeepRoute representative told TechCrunch that the company will use the funds to develop integrated visual language and action models capable of directly interpreting visual and textual inputs to make driving decisions, bypassing separate steps for perception, planning, and control. The funds will also be used to expand DeepRoute’s global robotaxi business and seek new partnerships with automakers.

These efforts are particularly relevant with Tesla’s Full Self-Driving (FSD) system set to launch in China and Europe in Q1 2025. In April, China eased some restrictions on Tesla, allowing the company a path to deploy FSD. Although FSD is not fully autonomous, it enables automated driving tasks in urban and highway environments.

DeepRoute’s CEO Maxwell Zhou told Reuters that the company aims to equip approximately 200,000 vehicles in China with its ADAS system by the end of 2025 — a tenfold increase from the current 20,000 vehicles using the technology.

The first car model with DeepRoute’s system, not yet publicly unveiled, launched in August. According to Zhou, the technology will also be installed on two additional models, including a joint project by Geely and Mercedes-Benz, by the end of this year.

DeepRoute charges automakers a licensing fee per vehicle for its technology and collects data to improve its AI, allowing it to learn to handle more complex road situations.