Uber has announced a deal for a $1 billion investment in its self-driving vehicle unit, just weeks before its initial public offering.
Toyota and Japanese auto-parts supplier Denso will together invest $667 million, while Soft-bank’s Vision Fund will invest $333 million. Soft-Bank is already Uber’s largest shareholder and Toyota invested $500 million last year.
The investment values the division, known as the Advanced Technologies Group (ATG), at $7.25 billion and creates a newly formed corporate entity with its own board. Representatives from the investors attended the signing ceremony at Uber’s San Francisco headquarters Thursday morning alongside Uber CEO Dara Khosrowshahi and ATG leader Eric Meyhofer
The new investment gives Uber fresh capital to develop technology for self-driving cars and trucks, that it will argue to investors is critical for its long term business model.
Toyota is also committing to contribute up to an additional $300 million over the next three years to help cover costs in the newly formed unit.
