By the end of 2016, China’s autonomous driving industry was in its most exhilarating phase. Internet giants were diving in: Uber acquired the autonomous trucking company Otto for $700 million, Google’s Waymo project announced its independence, and traditional automakers and chip manufacturers began entering the autonomous driving arena.
Amid this wave of innovation, two core engineers from Baidu’s Autonomous Driving Division—Peng Jun and Lou Tiancheng—decided to embark on an entrepreneurial journey. They chose a path that seemed both the most audacious and the most likely to change the world: autonomous driving.
Founding Team: A Pinnacle of Technological Excellence
Peng Jun, the first member of Baidu’s U.S. Research Institute and one of the few T11-level engineers, possessed outstanding expertise in designing autonomous driving architectures. Lou Tiancheng, known as the “world’s top programmer,” had worked on Google’s self-driving car team and was Baidu’s youngest T10-level engineer.
This powerhouse duo drew significant attention in the investment world. According to one investor, as long as "Master Lou" appeared, classmates from Tsinghua University’s elite Yao Class would eagerly join the team.
The Funding Boom: From Sequoia to Toyota
Sequoia Capital: Trust at the Starting Line
In just a few months after its founding in 2016, Pony.ai secured $70 million in Series A funding from Sequoia Capital. Partners such as Zhou Kui and Shen Nanpeng were optimistic about the field, viewing autonomous driving as an industry requiring long-term investment with no shortcuts.
Sequoia’s investment approach was unique: the project involved the rare collaboration of three partners, highlighting their strong confidence in the team.
FiveYuan Capital: Pragmatism and Vision
In 2017, Zhang Fei, a partner at FiveYuan Capital, joined as an investor, captivated by the founding team’s “engineering mindset.” Zhang believed that in a field like autonomous driving—where everything needed to be redefined—the team’s pragmatic style and technical expertise were essential.
Toyota’s Strategic Investment: A Brain Looking for a Body
In February 2020, Toyota invested $400 million at a $3 billion valuation, marking a critical milestone in Pony.ai’s funding history. Peng Jun made 6–7 trips to Japan over the course of half a year to negotiate the partnership.