Wayve Technologies, a UK-based firm specializing in artificial intelligence (AI) technology for autonomous vehicles, has successfully raised $1.05 billion (£840 million) in funding.

Leading technology companies such as Microsoft and Nvidia are among the investors participating in Wayve’s latest funding round, which is spearheaded by investment firm SoftBank.

This funding round represents the largest known investment in an AI company in Europe to date.

Wayve intends to utilize the funding to further advance its efforts in developing the autonomous cars of the future.

Prime Minister Rishi Sunak hailed the investment, stating that it solidifies the UK’s position as an AI powerhouse.

He remarked, “The fact that a homegrown, British company has secured the biggest investment yet in a UK AI start-up is a testament to our leadership in this industry.”

Alex Kendall, CEO of Wayve, emphasized the significance of the investment in showcasing the strength of the UK’s AI ecosystem and expressed anticipation for the growth and success of more AI companies in the country.

Despite this optimistic outlook, the world’s most valuable AI firms are predominantly based in the United States and China.

Meanwhile, the UK’s competition watchdog is actively investigating whether a small number of major tech firms are poised to dominate a significant portion of the market.

Wayve’s technology focuses on powering future self-driving vehicles through what it terms “embodied AI,” which interacts with and learns from real-world environments.

Transport Secretary Mark Harper previously indicated that self-driving vehicles could potentially be operational on certain UK roads by 2026.

The impending passage of the government’s Automated Vehicles Bill aims to establish a regulatory framework for the safe deployment of cars equipped with assistive or autonomous driving features on UK roads, with the goal of unlocking a transportation revolution.

The bill seeks to address legal liability concerns for both companies and drivers involved in the use of automated vehicles.

However, the international adoption of self-driving technology faces challenges, particularly regarding safety regulations.

US regulators continue to scrutinize the safety of AI-powered assistive driving features following incidents of fatal crashes involving vehicles equipped with such technology.

Ford and Tesla are among the manufacturers under investigation, with the National Highway Traffic Safety Administration (NHTSA) probing the safety of their respective driving technologies.

Tesla, in particular, faced a significant recall of over two million vehicles in December, prompting further inquiries from regulators regarding the adequacy of its remedial actions to address safety concerns.