China autonomous driving chip start-up hits $2b valuation
Black Sesame Technologies, a China-based chipmaker specializing in autonomous driving applications, has raised several hundred million dollars through two funding rounds at a valuation of $2 billion.
The two rounds are described as a strategic round and a Series C. A process has already been launched for a Series C extension.
The two new rounds were led by Hubei Xiaomi Changjiang Industrial Fund. This represents Xiaomi’s first investment in the automotive chip field. It follows the smart phone brand announcing plans to enter the electric vehicle space and its acquisition of local autonomous driving technology developer Deepmotion.
Other participants in the rounds include FAW Group's FulScience Automotive Electronics, the investment arm of Shanghai-listed Wingtech Technology, Summitview Capital, FutureX Capital, Oriza Hua, Lenovo Capital & Incubator Group, and Sunic Capital.
FAW, one of China's largest state-owned carmakers, is also a long-term partner of Black Sesame. In 2019, it collaborated with the start-up on autonomous vehicle chips and visual perception algorithms, with a view to deploying them in FAW vehicles.
Founded in 2016, Black Sesame has R&D centers in Shanghai and Silicon Valley. It focuses on high-performance, high computing power chips for autonomous driving platforms and intelligent vehicles. The company is also commercializing advanced driver-assistance systems (ADAS) and autonomous driving perceptual system solutions with various partners.
In addition, Black Sesame has been exploring the broader implementation of its algorithm and image processing technologies. Progress is already being made in consumer electronics, specifically smart phones and smart home systems.
The global AI chip market will be worth $9.1 billion by 2025, and hit $18.1 billion by 2030, according to a statement.
Within the automotive space, Black Sesame expects intelligence, electrification, networking, and sharing to reshape the value chain. Cars will transform from traditional travel tools into mobile smart spaces. The hardware that underpins this transition is built on chips, which will become the new engines of the smart car era.
Black Sesame's Series B closed in 2019 on approximately $100 million. It was led by Legend Capital, with participation from SK Hynix, the VC arm of China Merchants Group, Delta Capital, Fenghe Capital, and existing investor Northern Light Venture Capital.
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