The global race for autonomous driving technology is intensifying, and Chinese startup Momenta is emerging as one of the industry’s most influential players. The Beijing-headquartered company is reportedly raising a fresh round of funding that could value it at nearly $6 billion, according to sources familiar with the matter. While the exact figure may shift as discussions evolve, the development signals growing investor confidence in the company’s driverless technology and its partnerships with global automotive giants.
With competition heating up across China, Europe, and the United States, Momenta’s expanding portfolio of collaborations with Mercedes-Benz, BMW, Toyota, Tencent, and other major investors positions it as a critical force shaping the future of smart mobility.
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The Latest Funding Round
Two people with knowledge of the matter told CNBC that Momenta’s new fundraising round could push its valuation to about $6 billion, though the final figure may change. Bloomberg previously reported a similar deal valuing the company above $5 billion.
Momenta has not yet commented publicly on the funding details, but the move comes at a time when global automakers are doubling down on self-driving systems. The new capital is expected to fuel research, development, and deployment of Momenta’s advanced driver assistance software across international markets.
Building the Brains Behind Autonomous Driving
Founded in 2016, Momenta focuses on software and algorithms that allow vehicles to operate with varying levels of autonomy. Unlike companies building entire self-driving cars, Momenta specializes in Advanced Driver Assistance Systems (ADAS). These systems help cars perform semi-autonomous tasks such as changing lanes, navigating highways, parking, and urban driving.
This software-driven model allows Momenta to partner seamlessly with established automakers, integrating its AI-powered solutions directly into vehicles rather than competing against carmakers. The strategy not only broadens its customer base but also accelerates real-world deployment.
Partnership With Mercedes-Benz: A Breakthrough Deal
In September, Momenta announced a landmark deal with Mercedes-Benz to embed its driver assistance technology into the German auto giant’s all-new electric CLA in China. According to a joint press release, the technology will enhance driver assistance features across highways, city roads, and parking environments.
Industry insiders revealed that Momenta’s systems will eventually be integrated into 40 different Mercedes-Benz models, making this partnership one of the largest between a Chinese AI company and a European automaker.
This collaboration demonstrates the global automotive industry’s willingness to embrace Chinese AI innovations—a trend that underscores the country’s rapid progress in artificial intelligence and smart mobility.
BMW Joins the Momentum
Just months before the Mercedes-Benz announcement, BMW signed a similar agreement with Momenta in June. The German automaker plans to integrate Momenta’s driver assistance software into its upcoming Neue Klasse electric vehicle lineup in China.
By working with both Mercedes-Benz and BMW—two of the world’s most iconic auto brands—Momenta has positioned itself as a strategic partner of choice for companies seeking to deploy reliable, scalable, and future-ready driverless technology.
Strong Investor Backing
Momenta’s progress is supported by a robust group of global investors. Its backers include some of the most powerful names in technology and mobility, such as:
- Tencent – China’s internet and AI powerhouse.
- Temasek – Singapore’s state-owned investment firm.
- SAIC Motor – One of China’s largest automakers.
- Toyota – Japan’s automotive leader.
- Mercedes-Benz – Long-standing partner and investor.
This investor mix provides not only financial strength but also strategic advantages across automotive manufacturing, AI, and global markets.
Navigating a Fiercely Competitive Market
The autonomous driving industry is one of the most competitive sectors in technology today. In China, Momenta faces competition from Horizon Robotics, WeRide, and Pony.ai, while globally, tech leaders like Nvidia dominate the AI hardware and software ecosystem.
Despite this crowded field, Momenta has carved a unique position by focusing on flexible, scalable, and automaker-friendly software solutions. Rather than pursuing the elusive goal of full driverless cars immediately, the company builds step-by-step, advancing from driver assistance features to higher levels of autonomy.
This pragmatic approach reduces risk while steadily building trust with automakers and consumers alike.
Preparing for an IPO
As momentum builds, Momenta is also preparing for a public listing. According to Reuters, the company is considering shifting its planned initial public offering (IPO) from New York to Hong Kong.
Such a move would reflect the changing geopolitical and financial landscape, with Chinese tech firms increasingly opting for Hong Kong or domestic exchanges instead of U.S. markets. A Hong Kong IPO could help Momenta attract both Asian and global investors, while ensuring regulatory alignment in China.
The Bigger Picture: Why Momenta Matters
Momenta’s rise speaks to the broader transformation sweeping the global automotive industry. With electric vehicles, AI, and autonomous systems converging, automakers must adapt quickly to stay competitive. Chinese startups like Momenta are no longer playing catch-up—they are actively shaping the direction of mobility worldwide.
By securing contracts with luxury automakers like BMW and Mercedes-Benz, Momenta has not only validated its technology but also opened the door to mass adoption. As automakers integrate AI systems into mainstream vehicles, consumers will experience safer, smarter, and more connected driving environments.
Frequently Asked Questions:
What is Momenta?
Momenta is a Beijing-headquartered Chinese startup specializing in autonomous driving software and algorithms, particularly Advanced Driver Assistance Systems (ADAS).
How much is Momenta currently valued at?
Momenta is raising fresh funds that could value the company at around $6 billion, reflecting its strong market position and global partnerships.
Which automakers are partnering with Momenta?
Momenta has secured major deals with Mercedes-Benz and BMW to integrate its driver assistance technology into their upcoming electric vehicle models in China.
What technology does Momenta provide?
The company develops ADAS solutions that enable vehicles to perform semi-autonomous functions such as lane changing, urban navigation, highway driving, and automated parking.
Who are Momenta’s major investors?
Momenta’s investor base includes Tencent, Temasek, SAIC Motor, Toyota, and Mercedes-Benz, among others.
How does Momenta compare to its competitors?
In China, Momenta competes with companies like Horizon Robotics, WeRide, and Pony.ai, while globally, it faces competition from tech leaders such as Nvidia.
Is Momenta planning an IPO?
Yes. Reports suggest Momenta is considering an initial public offering (IPO) in Hong Kong, shifting from its earlier plans to list in New York.
Conclusion
Momenta’s journey reflects the rapid evolution of autonomous driving and the growing influence of Chinese innovators in global mobility. With a potential $6 billion valuation, strategic investments from top industry players, and groundbreaking partnerships with Mercedes-Benz and BMW, the company has established itself as a frontrunner in the driverless technology race. By focusing on practical, scalable software solutions rather than futuristic prototypes, Momenta is bringing autonomous driving closer to everyday reality. Challenges remain—ranging from regulatory hurdles to fierce competition—but the company’s steady progress, strong financial backing, and global collaborations signal a promising future. If momentum continues, Momenta could redefine how the world drives and cement its position as a pioneer in the future of smart transportation.
