Microsoft Accelerates with Potential $2B Investment in UK’s Autonomous Driving Pioneer Wayve
Microsoft hits the gas on autonomous vehicle technology, eyeing a massive $2 billion stake in British self-driving startup Wayve.
The Drive Toward Dominance
This potential investment signals Microsoft's aggressive push into the autonomous vehicle space, positioning itself against tech giants already racing in the self-driving arena. The UK-based Wayve specializes in machine learning systems that could revolutionize how vehicles navigate complex urban environments.
Strategic Shift or Just Another Tech Bet?
While traditional automakers struggle with electric transitions, tech companies keep throwing billions at moonshot projects—because what could possibly go wrong with machines driving themselves through London's chaotic streets? The move demonstrates Microsoft's continued appetite for bold tech investments beyond its core software business.
This potential deal would mark one of the largest European autonomous driving investments to date, proving that when it comes to future mobility, everyone wants a piece of the road.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
MSFT shares ROSE over 1% in pre-market trading.
Big Backers
According to an article in the Financial Times, the three companies are in talks to raise between $1 billion and $2 billion, which could value the firm at about $8 billion.
This comes only a few weeks after semiconductor giant Nvidia (NVDA) signed a letter of intent for a potential $500 million investment in the London-based group.
Founded in 2017, Wayve raised over $1 billion last year, led by SoftBank Group and supported by both Microsoft and Nvidia. Ride-hailing platform Uber (UBER) had also made a separate investment in the firm in 2024, for an undisclosed sum.
Nvidia also supplies the chips to power the Wayve platforms. Indeed, the upcoming Wayve Gen 3 platform will be built on NVIDIA DRIVE AGX Thor.
The interest shown from these major firms is not just down to the potential of Wayve’s tech but the need to stay ahead of the pack when it comes to innovation. This is why – see above – it is such a key risk to companies like Microsoft and its investors.
WAYVE Hello
Wayve’s technology, unlike conventional systems that rely on detailed digital maps and coding, uses machine learning with camera sensors mounted on the vehicles to learn from traffic patterns and driver behavior. Its main rivals are Alphabet’s (GOOGL) Waymo, Tesla (TSLA), China’s BYD (BYDDY) and Amazon’s (AMZN) Zoox.
Wayve currently operates in Britain and the U.S. and has been expanding testing and development to wider markets like Germany and Japan. It signed its first partnership to deploy its technology with a major carmaker, Nissan (NSANY), back in April.
The deal means Wayve will install its technology into Nissan vehicles from 2027.
Japan has been slower to develop and adopt autonomous driving than the U.S.. Europe has also been a laggard so expect some deals for Wayve there in the upcoming months.
Wayve, Microsoft and SoftBank did not comment on the FT report.
Is MSFT a Good Stock to Buy Now?
On TipRanks, MSFT has a Strong Buy consensus based on 34 Buy and 1 Hold ratings. Its highest price target is $680. MSFT stock’s consensus price target is $628.05, implying a 22.92% upside.
