(Bloomberg) -- Self-driving technology startup Pony.ai struck a funding agreement with carmaker FAW Group, calling it the first strategic investment by a Chinese state-owned vehicle manufacturer into an autonomous-technology company.
As part of the pact, Pony.ai technology will be used in a vehicle platform that forms the basis of FAW's Red Flag-branded electric cars, the startup said Tuesday. Pony.ai will also work with FAW's Jiefang arm, the first time its technology will be used in trucks. The size of the investment wasn't disclosed.
Pony.ai, China's response to General Motors Co.'s Cruise LLC and Alphabet Inc.'s Waymo LLC, develops and operates autonomous-driving fleets in the U.S. and China. It announced a $400 million investment from Toyota Motor Corp. earlier this year that pushed its valuation to more than $3 billion, and has set up its main hub in Fremont, California.
Autonomous-Driving Startup Pony.ai Takes On Last-Mile Delivery
Founded in 2016, Pony.ai's investors also include Sequoia Capital China and IDG Capital.
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