Waymo, the autonomous vehicle division of Alphabet Inc., is accelerating its expansion, with its robotaxi services increasingly becoming a familiar sight in new cities and across broader service areas. While the company’s rapid growth garners significant attention, the underlying technological advancements driving this expansion are now coming into sharper focus. Central to Waymo’s strategy is its sixth-generation self-driving system, first showcased in its next-generation Ojai robotaxi. This new system is not only enabling wider deployment but is also a critical component in Waymo’s long-term objective of achieving profitability, a goal that hinges on reducing costs across the board.
The Ojai robotaxi, recently made available to all riders in Los Angeles, Phoenix, and San Francisco, represents a significant step in Waymo’s pursuit of economic viability. The company has consistently highlighted that this next-generation vehicle is designed to be cheaper to manufacture, operate, and maintain. However, the extent of Waymo’s vertical integration in achieving these cost efficiencies was less clear until recently. This week, Waymo revealed its significant investment in developing custom silicon, a move that underscores its commitment to controlling key technological components and optimizing performance for its autonomous driving systems.
Custom Silicon: The Engine of Efficiency
Waymo has announced the development and integration of a custom 5nm ASIC (Application-Specific Integrated Circuit) chip. This advanced chip is engineered to process the immense volume of raw data generated by the vehicle’s sensor suite before it is fed to the central processing unit, often referred to as the "brain" of the self-driving system. The Waymo Ojai is equipped with 13 high-fidelity cameras, contributing to the substantial data stream this chip is designed to handle. According to Waymo, this proprietary silicon delivers over 1,000 TOPS (trillions of operations per second) of computing performance. This performance metric places it in direct competition with high-end automotive processors like Nvidia’s DRIVE AGX Thor, a powerful platform specifically designed for advanced automated driving applications.
The strategic advantage of this custom silicon, as articulated by Waymo, lies in its ability to achieve "unmatched efficiency and performance." This enhanced efficiency is crucial for enabling the system to react rapidly and reliably in complex, data-intensive urban environments. By designing its own silicon, Waymo aims to tailor processing capabilities precisely to its needs, potentially eliminating inefficiencies associated with off-the-shelf solutions and gaining a competitive edge in the speed and accuracy of its autonomous decision-making. This move also signifies a deeper commitment to in-house development, reducing reliance on external chip manufacturers for critical components.
A Collaborative Ecosystem: Partners in Innovation
While Waymo is emphasizing its custom silicon development, it’s important to acknowledge that the company operates within a broader ecosystem of technological partners. Waymo has listed a significant number of collaborators involved in its compute stack, including prominent industry players such as AMD, Micron, Nvidia, Samsung, SanDisk, Socionext, and TSMC. This collaboration highlights the complex and interconnected nature of the autonomous vehicle industry, where specialized expertise from various companies is often leveraged to bring sophisticated technologies to market. The involvement of TSMC, a leading semiconductor foundry, is particularly noteworthy, as it is likely responsible for the manufacturing of Waymo’s custom ASIC chips.
A Security Probe into Chinese Lidar Sensors
In parallel to Waymo’s technological advancements, a curious investigation is underway that could have significant implications for the broader automotive supply chain. Sources have revealed that the Idaho National Laboratory is conducting an evaluation to determine whether Chinese lidar sensors pose a potential security risk if widely adopted in U.S. vehicles. This research is reportedly being funded by entities within the electric and autonomous vehicle industries, though the specific companies involved have not been publicly disclosed.
Sean O’Kane, a senior reporter at TechCrunch focusing on special projects, has been investigating this matter. Inquiries made to numerous automotive and technology companies, including Rivian, General Motors, Ford, Kodiak, Lucid Motors, Nuro, and Uber, indicated that these firms were unaware of the Idaho National Laboratory’s review. Aurora, Nvidia, and Zoox did not respond to requests for comment. The findings of this investigation could influence procurement decisions and regulatory policies concerning foreign-manufactured critical components for autonomous vehicles, adding another layer of complexity to the industry’s global supply chain dynamics.
Deals and Funding Rounds: Fueling Autonomous Ambitions
The autonomous vehicle sector continues to be a hotbed of investment and strategic partnerships. Several significant deals and funding rounds have recently been announced, reflecting sustained confidence and capital flow into the industry.
Also, a startup that originated as an incubator within Rivian, has secured an additional $150 million in a Series D funding round. This round was led by Prysm Capital and included participation from existing investors such as Eclipse, Greenoaks, and MVP Ventures. Since its spin-off from Rivian in March 2025, Also has now raised a total of $455 million. The company’s mission has also undergone a significant evolution. Initially focused on micromobility, specifically electric bikes and commercial cargo quads, Also has repositioned itself as a technology company developing highly capable driven and autonomous small electric vehicles. This pivot towards autonomy was further solidified earlier this year with a $200 million funding round and a commercial agreement with DoorDash to develop and deploy autonomous delivery vehicles. This latest funding will likely support its ongoing development and expansion in the autonomous vehicle space.
Serve Robotics, a company specializing in sidewalk delivery robots, has also finalized several key partnerships that are particularly timely given recent shifts in its relationship with Uber. While Serve Robotics previously reported a reduction in Uber’s utilization of its robots, with the partnership set to conclude next year, and Uber divesting its stake in the company, Serve has moved to diversify its client base. The company has partnered with Grubhub to deploy its sidewalk robots in Chicago, Los Angeles, and Alexandria, Virginia. Furthermore, Serve Robotics has expanded its existing agreement with DoorDash to include San Jose, California, and Washington, D.C. This diversification strategy is a critical lesson for scaling companies, as demonstrated by Uber’s evolving role, and appears to be a prudent move for Serve Robotics.
In the realm of commercial trucking, Einride, the Swedish electric and autonomous trucking company, has entered into a significant agreement with Tesla. The deal involves the purchase of 500 Tesla Semis, which Einride will then make available to its clientele, including major companies like Amazon. These electric big rigs are slated to be integrated into Einride’s fleet in phases over the next 24 months, commencing in September. This development is noteworthy as Tesla continues its efforts to scale up Semi production, a process that has faced some adjustments to its projected timelines.
Grounded, a Detroit-based startup that specializes in customizing electric and gas-powered vans, has successfully raised a $5 million seed round. This funding was supported by repeat investments from existing backers such as Also Capital and The 81 Collection, alongside new contributions from Animal Capital, the Michigan Outdoor Innovation Fund, and a group of "various SpaceX alumni," according to founder and CEO Sam Shapiro. This investment will fuel Grounded’s efforts to enhance and expand its van customization services.
Uber has also announced a strategic investment in and partnership with drone delivery company Zipline. While the financial details of this investment were not disclosed, the companies have set an ambitious target: to facilitate one million deliveries per day using Zipline’s drones by the end of 2029. This collaboration signals a significant push into aerial logistics for Uber.
Vessev, a New Zealand-based startup developing electric hydrofoil boats, has raised $19 million in a Series A funding round. The round was led by Blackbird Ventures and included new investors GD1 and Rypples, as well as existing backers such as K1W1, Icehouse Ventures, Shasta Ventures, NZVC, and several angel investors. This funding will support Vessev’s expansion into the U.S. market and the continued development of its innovative electric marine technology.
Notable Reads and Industry Tidbits
The autonomous vehicle landscape is constantly evolving, with significant developments emerging across various segments of the industry.
Amazon is significantly expanding its drone delivery service, Prime Air, with plans to reach nearly 500 U.S. cities by the end of 2026, a sixfold increase from its current operational footprint. This ambitious expansion underscores Amazon’s commitment to leveraging drone technology for rapid package delivery.
Bedrock Robotics, a startup founded by former Waymo and Segment engineers, has announced that its self-driving excavator systems are now operating fully autonomously at three large customer sites in Nevada and Texas. This development marks a significant step forward in the automation of heavy construction equipment.
Hyundai’s luxury automotive brand, Genesis, has unveiled the GV90, a seven-seater electric SUV designed to compete in the premium large EV segment against vehicles like the Cadillac Escalade IQ and Rivian R1S. The GV90 signifies Genesis’s growing presence in the electric vehicle market.
In China, Tesla is participating in a recall affecting millions of vehicles across 11 car manufacturers. The recall addresses issues with hidden emergency door releases that could potentially trap occupants in the event of a crash or fire. Other manufacturers involved include Xiaomi, Xpeng, and Geely brands Zeekr and Lynk & Co.
Nevada regulators have issued permits to Tesla, Uber, and Waymo, authorizing them to operate commercial robotaxi services in Clark County, which includes Las Vegas. These permits collectively allow for the deployment of up to 8,000 robotaxis in the county over the next 12 months. While the full deployment of all 8,000 vehicles within this timeframe is unlikely, even a fraction of this number could significantly impact the transportation landscape of Las Vegas.
The Dutch Data Protection Authority has fined Uber €825 million (approximately $966 million) for utilizing automated systems to deactivate or suspend driver accounts without adequate notification, a violation of European data protection regulations. This penalty highlights the increasing scrutiny on how companies handle driver data and automated decision-making processes.
Uber has also been active in other autonomous vehicle initiatives. The company has commenced early rider testing in London in partnership with Wayve. Additionally, Uber has launched a robotaxi service in Zagreb, Croatia, in collaboration with Pony.ai and Verne, and is offering driverless rides in Dubai with Baidu. These global deployments showcase Uber’s multifaceted approach to autonomous mobility.
Waymo has formally responded to inquiries from the National Highway Traffic Safety Administration (NHTSA) regarding a low-speed collision involving one of its robotaxis and a child. While Waymo has provided documents to the regulator as part of the ongoing investigation, the company has stated that the majority of these responses, particularly those released thus far, are redacted. This investigation underscores the critical need for transparency and accountability in the development and deployment of autonomous vehicle technology.
About the Author
