Pony AI secures $260 million in US IPO
US investors show renewed interest in AI as Pony.ai raises $260 million in its public offering.
Chinese robotaxi firm Pony AI secured $260 million in a US IPO, valuing the startup at $4.55 billion. This marks a resurgence in US investor confidence for Chinese tech companies, with the IPO reflecting renewed interest in autonomous driving technologies despite ongoing geopolitical tensions.
The company’s move follows a period of uncertainty for Chinese firms in US markets, notably after Didi Global’s delisting. Regulatory disputes between China and the US have eased, bolstering opportunities for companies like Pony AI. However, the robotaxi sector faces challenges, including public concerns about autonomous vehicles’ safety, data privacy, and stiff competition from rivals such as Tesla, which plans to launch similar services in the US next year.
Pony AI sold 20 million American depositary shares at $13 each and raised an additional $153.4 million through private placements. Backed by Toyota, the company’s valuation has declined from $8.5 billion two years ago, highlighting the competitive and uncertain nature of the market. Analysts note widespread robotaxi adoption may take years due to safety and reliability hurdles.
The IPO follows a trend of other Chinese firms, including Zeekr and WeRide, also going public in the US. While Pony AI’s operations in the US remain limited, its public listing underscores growing investor interest in technology startups despite profitability challenges and intense market competition.
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