Horizon Robotics, a Chinese company specializing in autonomous driving systems, is preparing its IPO in Hong Kong. On the front line, the two tech giants Baidu and Alibaba intend to take advantage of the opportunity to strengthen their position in a sector that is on the rise.
China is encouraging the development of autonomous driving
The company wants to raise nearly $696.6 million during the operation, 70% of which will be allocated to R&D over the next five years. Alibaba, Baidu and financial conglomerate Beijing Financial Holdings will be among the largest investors in Horizon Robotics, committing to acquire 30% of its shares.
Horizon Robotics works on artificial intelligence (AI) solutions and electronic chips for autonomous driving and has already established strategic partnerships with well-known manufacturers such as Volkswagen and BYD. It plays the role of technological facilitator for these brands seeking to develop autonomous driving solutions.
It operates in a sector that has just been turned upside down by Tesla. Elon Musk’s company has actually presented its Cybercab, a robot axis with a futuristic design, specifically designed for autonomous driving. But in China there is also a lot of progress in this area, while the government promotes regulations favorable to this type of technology.
Thus, more and more companies in the Middle Kingdom are exploring the use of advanced driver assistance systems and autonomous taxis. And they are experiencing growing success, the IPO of Horizon Robotics being the perfect example.
A strategic operation for Baidu and Alibaba
For Alibaba and Baidu, support for Horizon Robotics is of great strategic importance. The Chinese search engine is already a major player in autonomous driving with its Apollo project, a software and hardware platform for autonomous vehicles. By investing in Horizon Robotics, it can strengthen its technology ecosystem by taking advantage of the company’s advanced hardware solutions and algorithms.
It is also an opportunity to establish relationships with other Chinese and foreign companies that collaborate with Horizon Robotics. This allows them to influence the development of the ecosystem, while securing a dominant position in the development and commercialization of these technologies.
Another important point, Horizon Robotics’ efforts in artificial intelligence could benefit the two giants, which utilize the technology in some of their operations. As BYD did in the electric car industry, Horizon Robotics, thanks to its stock market listing, could tickle the American giant in the autonomous driving sector.
- Chinese self-driving company Horizon Robotics is preparing to go public in Hong Kong.
- Baidu and Alibaba, two Chinese technology giants, will invest in the company.
- An operation which will allow them to strengthen their position in a strategic sector, turned upside down by Tesla’s latest announcements.
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