Chinese ride-hailing giant Didi is reportedly seeking to raise new funding for its autonomous vehicle technology unit, with a valuation target of $5 billion. According to Bloomberg News, the company is in talks with investors, including a Beijing-based fund, to gauge interest in the funding round.

The move comes amid growing investor interest in self-driving cars in China, following the successful initial public offerings (IPOs) of WeRide and Pony AI, which have market capitalizations of $4.7 billion and $5.25 billion, respectively. Didi's autonomous vehicle unit, created in 2020, has already raised a total of $1.55 billion to date, including a $298 million round in October 2024, according to PitchBook data.

Didi Autonomous Driving, the company's autonomous vehicle arm, is currently testing a fleet of around 200 autonomous vehicles across Beijing, Guangzhou, and Shanghai. While the company has not yet begun commercial robotaxi operations, it is expected to use the upcoming funds to continue developing its autonomous vehicle technology and speed up mass production of its electric robotaxis. The robotaxis are being built in partnership with EV maker GAC Aion, with the first units set to be produced in 2025.

The funding round is significant not only for Didi but also for the broader autonomous vehicle industry in China. With investor interest high, the success of Didi's funding round could pave the way for further investment in the sector, driving innovation and growth in the market. As the autonomous vehicle industry continues to evolve, Didi's move is likely to have a ripple effect on the entire ecosystem.

TechCrunch has reached out to Didi for more information on the funding round, but the company has yet to respond. As the story develops, it will be interesting to see how Didi's autonomous vehicle unit fares in its quest for fresh funding and how the company plans to utilize the funds to drive growth and innovation in the sector.

In the broader context, Didi's move highlights the growing importance of autonomous vehicles in the global transportation landscape. As companies like Didi, WeRide, and Pony AI continue to push the boundaries of autonomous vehicle technology, it is likely that we will see significant changes in the way people and goods move around cities in the years to come. With its sights set on a $5 billion valuation, Didi's autonomous vehicle unit is poised to play a major role in shaping the future of transportation.