Pony.ai, a self-driving startup based in Silicon Valley and Guangzhou, China, is deepening its ties to Toyota. The two companies announced a pilot program to test self-driving cars on public roads in two Chinese cities, Beijing and Shanghai. The Japanese auto giant plans to invest $400 million in Pony.ai, valuing the startup at $3 billion. Pony.ai has been working with Toyota since 2019 on public autonomous vehicle testing. With this new investment, their relationship will become even closer, with the automaker and the startup "co-developing" mobility products like "mobility services."

TOKYO (Reuters) – Toyota Motor Corp is targeting developing in the next five years driver assistance systems that integrate artificial intelligence to improve vehicle safety, the head of its advanced research division said. Gill Pratt, CEO of recently set up Toyota Research Institute (TRI), the Japanese automaker's research and development company that focuses on AI, said it aims to improve car safety by enabling vehicles to anticipate and avoid potential accident situations. Toyota has said the institute will spend 1 billion over the next five years, as competition to develop self-driving cars intensifies. Earlier this month, home rival Honda Motor Co said it was setting up a new research body which would focus on artificial intelligence, joining other global automakers which are investing in robotics research, including Ford and Volkswagen AG. "Some of the things that are in car safety, which is a near-term priority, I'm very confident that we will have some advances come out during the next five years," Pratt told reporters late last week in comments embargoed for Monday.