Mercedes rides the AI Wayve with self-driving deal

Mercedes-Benz plans to incorporate Wayve's self-driving technology into its vehicles within two years, marking Wayve's third major production deal in less than nine months. The German automaker has signed a production agreement to integrate Wayve's AI Driver into future models, enabling cars to navigate point-to-point journeys through city streets with advanced driver assistance.

As the first premium carmaker to sign up to Wayve's technology, Mercedes follows deals with Nissan and Stellantis. The agreement also strengthens ties between the two companies, following Mercedes' investment in Wayve's $1.2bn funding round earlier this year, which valued the London-based firm at $8.6bn. Wayve's AI Driver differs from conventional autonomous driving systems, as it does not rely on high-definition maps or city-specific software.

Instead, its AI is trained on driving data to adapt to various roads and environments, aiming for universal deployment across multiple vehicles and markets. Mercedes and Wayve have already integrated the technology with Mercedes' existing hardware, operating system, and mapping systems, testing vehicles in Stuttgart, London, and San Francisco.

The software is designed to cover both assisted driving, where a human remains responsible for the car, and eventually fully autonomous driving. Mercedes is the latest in a string of carmakers backing Wayve, following the same pattern with Nissan and Stellantis. The British company has secured three production agreements in under nine months, indicating its growing appeal to major automotive groups.

The deal also positions Wayve for commercial deployment, having worked with Uber on robotaxis and initiated supervised public rides in London. With $3.2bn raised to date and valued at $8.6bn in its latest funding round, Wayve is preparing for large-scale commercial operations, bolstered by recent hires, including former Waymo finance chief Elisa de Martel as its new chief financial officer.