Nuro Reboots the Road with AI and a $106 Million Funding Boost

Nuro, a trailblazer in autonomous vehicle technology, is reshaping the landscape of self-driving solutions. Founded in 2016 by former Google engineers Jiajun Zhu and Dave Ferguson, this AI-driven company has evolved from focusing solely on delivery robots to offering comprehensive autonomous driving platforms for various applications.​ The founders always emphasized the significance of “AI for the physical world.”

Meet the Nuro Driver

The Nuro Driver™ is an autonomous driving system that combines advanced AI software with specialized hardware. It’s designed to mimic safe, natural driving behaviors and can operate in various environments, making it suitable for different autonomous applications. The Nuro AI Platform™ supports the Nuro Driver™ with a set of adaptable developer tools for AI development and validation. This platform allows developers to improve and personalize autonomous driving features, promoting innovation in the autonomous vehicle industry. ​

The company’s recent announcement to license the Nuro Driver to automotive OEMs and mobility providers represents a strategic shift from vertical integration. This decision acknowledges the industry’s evolution, where vertical integration is no longer the sole option, and partnerships within the maturing ecosystem present a viable alternative.

Nuro has established significant partnerships to advance its technology and expand its market presence. In March 2025, it collaborated with Lenovo to accelerate autonomous driving solutions, leveraging NVIDIA DRIVE for enhanced performance. Additionally, Nuro has engaged with companies like Uber Eats, Kroger, Walmart, Domino’s Pizza, and Chipotle Mexican Grill to deploy its autonomous delivery services, demonstrating the versatility and commercial viability of its technology. ​Uber Eats and Nuro have partnered to test a 10-year commercial agreement using third-party vehicles for food deliveries, according to a report.

The California Department of Motor Vehicles last year approved Nuro’s application to test its third-generation R3 autonomous delivery vehicle in four Bay Area cities, namely Mountain View, Palo Alto, Los Altos and Menlo Park. This approval provides a positive boost for the AV startup after recent setbacks and financial struggles around 2021-22.

Speed Bumps Ahead

Nuro’s financial difficulties were primarily caused by overexpansion and a challenging economic climate. The company’s workforce doubled in 2021 in anticipation of continued funding, but the economic downturn in 2022 and resulting tightened capital markets negatively impacted the company’s financial stability.

This led to two rounds of layoffs to reduce expenses and extend its capital runway. 

Nuro’s financial trajectory still reflects strong investor confidence. The company just secured $106 million in a Series E funding round, achieving a valuation of $6 billion. This round included investments from T. Rowe Price Associates, Fidelity Management and Research, Tiger Global Management, Greylock Partners, and XN. The funds are earmarked for scaling AI capabilities and advancing commercial partnerships. To date, Nuro has amassed approximately $2.2 billion in total funding, underscoring its position as a leader in autonomous vehicle innovation. 

Down But Not Out

Nuro’s valuation has dropped from $8.6 billion in 2021 to $6 billion in its most recent funding round, mirroring a larger trend of increased investor scrutiny and tighter capital in the tech startup sector.

These challenges necessitated a strategic shift for Nuro, which included pivoting from solely operating its own autonomous delivery fleet to also licensing its self-driving technology to automakers by September 2024. This move aimed to diversify its business model but may have signaled a change in growth trajectory to investors, contributing to a more cautious valuation in the latest funding round.

Nuro faces fierce competition in the autonomous delivery vehicle space from established tech giants like Cruise, Waymo Via, and Amazon’s Zoox, as well as smaller companies like Serve Robotics and Gatik. Additionally, delivery platforms like Uber Eats and DoorDash are partnering with robotics companies to automate deliveries. This intense competition puts pressure on Nuro to innovate and stay ahead.But as Jiajun Zhu, co-founder and CEO of Nuro, said, “Our technology, years of experience with driver-out Level 4 deployments, and focus on licensing uniquely position us to help automakers, mobility platforms, and commercial fleets accelerate their autonomy roadmaps.”