Didi Autonomous Driving, the self-driving technology unit of Chinese mobility giant Didi, announced Saturday that it has completed its Series D funding round, securing 2 billion yuan (approx. $274 million) to accelerate AI R&D and the deployment of Level 4 (L4) autonomous driving technology.

The round drew support from several major investors, including Zhongguancun Science City Technology Growth Fund, Beijing Information Industry Development Fund, Beijing AI Industry Investment Fund, GAC Group, Guangzhou Guanghua Fund, and Didi. The funds will be used to strengthen core AI capabilities and support the rollout of L4 autonomous driving applications across key pilot cities in China and abroad.

According to Bloomberg, the post-money valuation of Didi Autonomous Driving now exceeds $5 billion. This brings the unit’s total financing to over 10 billion yuan (approx. $1.37 billion) since its inception.

Didi began developing autonomous driving technology as early as 2016, making it one of the earliest Chinese firms to enter the space. In August 2019, the company spun off the unit into a standalone company, with a strong focus on Robotaxi deployment, product commercialization, and expansion of related services.

Over the past six years, Didi Autonomous Driving has gained momentum in both financing and technological milestones. Key past investors include Valeo, a leading international auto parts supplier, and SoftBank Vision Fund. In October 2024, the company closed a $298 million Series C round, led by GAC Group with participation from Didi.

L4 Rollout and Strategic Collaborations

Didi co-founder and CEO of the autonomous driving unit Zhang Bo described L4 autonomy as a transformative force for the next decade. “L4-level autonomous driving is one of the most important technological transformations of the next AI era. It will significantly improve travel safety, efficiency, and user experience,” he said.

He added that Didi has built close to a decade of experience across AI, mass production, and operations, and will continue advancing the technology responsibly while exploring new types of employment created by automation.

In terms of deployment, Didi Autonomous Driving unveiled its first driverless concept car, Didi Neuron, in April 2023. The company has secured road testing permits in Beijing, Shanghai, Suzhou, and California, and has formed strategic partnerships with GAC, BYD, and Aion to co-develop and commercialize autonomous vehicles.

In 2025, Didi and GAC Aion plan to deliver a new generation of pre-installed autonomous vehicles, with demonstrations scheduled in Beijing and Guangzhou. Didi has also begun fully driverless testing in complex urban scenarios—including during rush hours, late nights, and inclement weather—demonstrating stability and maturity of its L4 systems.

The integration of AI foundation models with autonomous driving is becoming a core focus of China’s automotive innovation and a global competitive frontier. Modern autonomous systems rely on sensors such as cameras, radar, and LiDAR to construct real-time "bird's-eye view" maps centered on the vehicle. These data are then processed by onboard computing platforms and uploaded—after desensitization—to the cloud for continuous AI training and algorithm refinement.

With each software update, vehicles receive improved driving logic, enhancing safety and user experience.

The SAE (Society of Automotive Engineers) defines six levels of driving automation from L0 to L5. Only L3 and above are considered truly autonomous, with L0–L2 remaining driver-assisted. Didi's focus on L4 marks a significant step toward high-level autonomy, where the vehicle can operate without human input under certain conditions.

Didi's AI Ecosystem Push

Beyond autonomous driving, Didi is increasingly integrating AI across its core ride-hailing business. In late September, it launched public testing of its AI-powered mobility assistant “XiaoDi Beta v0.8”, capable of understanding user needs and offering customized ride solutions via its dispatch system.

Additionally, Didi introduced a new Mobility Computing Platform (MCP), allowing AI developers to easily embed ride-hailing capabilities into intelligent agents—enabling tasks such as autonomous trip planning, ride ordering, real-time tracking, and payment.

Didi’s deep investment in AI talent, algorithms, and data infrastructure further strengthens its advantage in the race toward full automation.

According to projections from McKinsey’s Future Mobility Center, autonomous vehicles will generate up to $230 billion in global sales by 2030, with autonomous mobility services expected to reach $260 billion in annual transaction volume.

In addition to passenger-focused Robotaxi development, Didi has also spun off an autonomous freight unit, KargoBot, which recently closed a 600 million yuan Series A round. The unit focuses on self-driving logistics solutions, tapping into China's booming e-commerce and last-mile delivery sectors.