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Cruise is buying solar energy from California farmers to power its electric, self-driving fleet

Cruise, the self-driving car company under General Motors, has launched a new initiative called Farm to Fleet that will allow the company to source solar power from farms in California’s Central Valley. The San Francisco Chronicle was the first to report the news that Cruise is directly purchasing renewable energy credits from Sundale Vineyards and Moonlight Companies to help power its fleet of all-electric autonomous vehicles in San Francisco.

Cruise recently secured a permit to shuttle passengers in its test vehicles in San Francisco without a human safety operator behind the wheel. The company is also ramping up its march to commercialization with a recent $5 billion line of credit from GM Financial to pay for hundreds of electric and autonomous Origin vehicles. While this partnership with California farmers is undoubtedly a boon to the state’s work in progressing renewable energies while also providing jobs and financial opportunities to local businesses, Cruise isn’t running a charity here.

The California Independent System Operator has been soliciting power producers across the western United States to sell more megawatts to the state this summer in anticipation of heat waves that will boost electricity demand and potentially cause blackouts. Power supplies are lower than expected already due to droughts, outages and delays in bringing new energy generation sources to the grid, causing reduced hydroelectric generation. To ensure California’s grid can handle the massive increase in fleet size Cruise is planning, it seems that the company has no choice but to find creative ways to bolster the grid. Cruise, however, is holding firm that it’s got loftier goals than securing the energy from whatever sources are available.

“This is entirely about us doing the right thing for our cities and communities and fundamentally transforming transportation for the better,” Ray Wert, a Cruise spokesperson, told TechCrunch.

With droughts continuing to plague California farmers, converting farmland to solar farms is a potential way to help the state meet its climate change targets, according to a report from environmental nonprofit Nature Conservancy. Which is why Cruise saw the logic in approaching Central Valley farmers now.

“Farm to Fleet is a vehicle to rapidly reduce urban transportation emissions while generating new revenue for California’s farmers leading in renewable energy,” said Rob Grant, Cruise’s vice president of social affairs and global impact, in a blog post.

Cruise is paying negotiated contract rates with the farms through its clean energy partner, BTR Energy. The company isn’t disclosing costs, but says it’s paying no more or less than what it would pay for using other forms of renewable energy credits (RECs). RECs are produced when a renewable energy source generates one megawatt-hour of electricity and passes it on to the grid. According to Cruise, Sundale has installed 2 megawatts of solar capacity to power their 200,000 square footage of cold storage, and Moonlight has installed a combined 3.9 MW of solar arrays and two-battery storage system for its sorting and storage facilities. So when Cruise buys credits from these farms, it’s able to say that a specific amount of its electricity use came from a renewable source. RECs are unique and tracked, so it’s clear where they came from, what kind of energy they used and where they went. Cruise did not share how many RECs it plans to purchase from the farms, but says it will be enough to power its San Francisco fleet.

“While the solar power still flows through the same grid, Cruise purchases and then ultimately ‘retires’ the renewable energy credits generated by the solar panels at the farms,” said Wert. “Through data that we submit to the California Air Resources Board quarterly, we retire a number of RECs equivalent to the amount of electricity we used to charge our vehicles.”

Cruise is also working with BTR Energy to finalize a supply of RECs for its operations in Arizona, including its delivery pilot with Walmart.

Wert says using fully renewable power is actually profitable for Cruise in California due to the Low Carbon Fuel Standard, which is designed to decrease the carbon intensity of transportation fuels in the state and provide more low-carbon alternatives. Cruise owns and operates all of its own EV charging ports, so it’s able to generate credits based on the carbon intensity score of the electricity and amount of energy delivered. Cruise can then sell its credits to other companies seeking to reduce their footprints and comply with regulations. 

Aside from practicalities, Cruise is aiming to set a standard for the industry and create demand for renewable energy, thus incentivizing more people and businesses to create it. 

Aram Shumavon, CEO of grid analytics startup Kevala, says Cruise should be applauded for this partnership.

“What Cruise seems to be trying to acknowledge is that there is carbon intensity associated with the electricity that they’re consuming, and they’re offsetting that in some way,” Shumavon told TechCrunch. “There’s a whole category of carbon accounting, that’s referred to as Scope 3, which is trying to understand how much carbon the supply chain that you use to provide your service actually involves, and Cruise is probably, as a very deliberate decision, getting out in front of their Scope 3 requirements.”

Shumavon said that by quantifying the total carbon intensity of commercial activity, companies become more accountable to it and can then drive change by asking providers for their supply to source from renewables. For example, an automaker might ask their aluminum provider to source only from an area with hydroelectric power instead of coal power, which would ultimately bring the automaker’s carbon intensity down.

“Transportation is responsible for over 40% of greenhouse gas emissions, which is why we announced our Clean Mile Challenge in February, where we challenged the rest of the AV industry to report how many miles they’re driving on renewable energy every year,” said Wert. “We’re hoping that others follow our lead.”

This article has been updated to reflect new information provided by Cruise, as well as expert commentary from Aram Shumavon, CEO of Kevala. 

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Five, the self-driving startup, raises $41M and pivots into B2B, away from building its own fleet

We are still years away from a time when fully-autonomous cars will be able to drive us from A to B, and the complexity of getting to that point is likely going to need hundreds of billions of dollars of investment before it becomes a reality.

That hard truth is now leading to some shifts in the self-driving startup landscape. England’s Five (formerly known as FiveAI), one of the more ambitious companies in the space, is moving away from its original plan, of designing its own fully self-driving cars, and then running fleets of them in its own transportation service. Instead, it plans to license technology — starting with software to help test and measure the accuracy of a vehicle’s driving systems –that it has created to others building autonomous cars as well as the wider service ecosystem that will exist around that. As part of that pivot, today it’s also announcing a fresh $41 million in funding.

“A year and a bit ago we thought we would probably build the entire thing and take it to market as a whole system,” said co-founder and CEO Stan Boland in an interview. “But we gradually realised just how deep and complex that would be. It was probably through 2019 that we realised that the right thing to do is to focus in on the key pieces.”

The funding, a Series B, includes backing from Trustbridge Partners, insurance giant Direct Line Group and Sistema VC, as well as previous investors Lakestar, Amadeus Capital Partners, Kindred Capital and Notion Capital. The company has now raised $77 million and while it’s not disclosing its valuation, Boland said that it was definitely up on its last round. (Its Series A, in 2017, was for $35 million.)

Five’s change in course is a significant development: the high-profile startup, founded by a team that had previously built and sold several chip companies to the likes of Broadcom, Nvidia and Huawei, had been the leading partner for a big government-backed pilot project, StreetWise, to test and work on autonomous driving systems across boroughs in London. The most recent phase of that project, running driver-assisted rides along a 19-km route across south London, got off the ground only last October after initially getting announced in 2018.

Five might continue to work on research projects like these, Boland said, but the primary business aim for the company will no longer be ultimately to build cars for themselves, but to work on tech that will be sold either to other carmakers, or those building services catering to the autonomous industry.

For example, Direct Line, one of Five’s new investors and also a participant in the StreetWise project, could use testing and measurement to determine risk and pricing for insurance packages for different vehicles.

Autonomous and assisted driving technology is going to play a huge role in the future of cars,” said Gus Park, MD of Motor Insurance at Direct Line Group, in a statement. “We have worked closely with Five on the StreetWise project, and we share a common interest in solving the formidable challenges that will need to be addressed in bringing safe self-driving to market. Insurers will need to build the capability to measure and underwrite new types of risk. We will be collaborating with Five’s world-class team of scientists, mathematicians and engineers to gain the insight needed to build safe, insurable solutions and bring the motoring revolution ever closer.” Park is also joining Five’s board with this round.

There were already a number of big players in the self-driving space when FiveAI launched — they included the likes of Waymo, Cruise, Uber, Argo AI and many more — and you could have argued that the writing was already on the wall then for long-term consolidation in the industry. Indeed, there have been some significant casualties in the meantime, including Drive.AI (which Apple acquired after it ran out of money), Oryx Vision and Quanergy.

Five’s argument for why a UK — and indeed, European — startup was in a good place to build and operate self-driving cars, and the tech underpinning it, was because of the complexity behind building localised systems: a big US or Asian company might be able to map the streets in Europe, but it wouldn’t have as good of a feel for how people behaved on those roads.

Yet while it may have been easy to see the potential, the process of getting to that point proved to be too challenging.

“What’s happened in the last couple of years is that there has been an appreciation across the industry of just how wide and deep the challenges are for bringing self driving to market,” Boland said. “Many pieces of the jigsaw have to be assembled…. The B2C model needs billions [of investment], but others are finding their niche as great providers of technology needed to deliver the systems properly.”

As FiveAI (named after the “Level 5” that self-driving systems attain when they are truly autonomous), the company built (hacked) vehicles with dozens of sensors and through its tests managed to build a significant trove of vehicle technology.

“We could offer tech in a dozen different areas that are hard for autonomous driving companies,” Boland said. Its testing and measuring tools point to one of the toughest challenges among these: how to assure that the deep learning software a company is using is correctly identifying objects, people, weather, and other physical factors when it may have never seen them before.

“We have learned a lot about the types of errors that propagate from perception into planning… and now we can use that for providing absolute confidence” to those testing the systems, he said.

Self-driving cars are one of the biggest AI challenges of our time: not only is the requirement to essentially build from the ground up computer systems that behave as well as (or ideally better) than multitasking humans behind the wheel; but the consequence of doing that wrong is not just a strange string of words, or some other kind of non sequitur, but injury or death. No surprise that there appears still a very long way to go before we see anything like Level 5 systems in action, but in the meantime, investors are willing to continue placing their bets. Partly because of how advanced it got with its car project on relatively little funding, Five remains an interesting company to investors, and Boland hopes that this will help it with its next round down the road.

“We invest in category-leading companies that are delivering transformational change wherever they’re located,” said David Lin of Trustbridge Partners in a statement. “As Europe’s leading self-driving startup, Five is the furthest ahead in developing a clear understanding of the scientific challenges and novel solutions that move the needle for the whole industry. Five has successfully applied Europe’s outstanding science and engineering base to create a world-class team with the energy and ambition to deliver safe self-driving. We are delighted to join them for this next phase of growth.”

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DeepMap, a maker of HD maps for self-driving, raised at least $60M at a $450M valuation

As car and tech companies continue to make inroads on vehicles and services to build autonomous driving systems, a startup that is creating high-definition maps to help these vehicles move around has quietly picked up a significant round of funding.

DeepMap — a Palo Alto startup co-founded by James Wu and Mark Wheeler, who previously helped build maps and more at Google, Apple and Baidu — has raised a significant round of growth funding at a valuation of at least $475 million to expand its technology stack and its reach into more markets beyond its current footprint of the U.S. and China.

Founded in 2016, DeepMap has been relatively quiet since raising $25 million in 2017, but news about this round has been trickling out for the last few months. In July, the company filed papers for a $60 million Series B round. In August, it noted that Nvidia had joined the round, which by that point was “oversubscribed” but still not closed.

And today, Generation Investment Management — the VC firm that counts former Vice President Al Gore and others among its co-founders — also confirmed that it is part of that Series B, along with previous investors Andreessen Horowitz, Accel Partners and GSR Ventures, and new investor Robert Bosch Venture Capital. PitchBook notes that the round puts the valuation of DeepMap at $450 million post-money. However, with Generation added to the mix, both the size of the Series B and the valuation might be higher.

We’ve asked and Generation and DeepMap are not disclosing those details, but they have said that the investment is being made because the interests of the startup are in line with that of the VC.

“DeepMap and Generation share the deeply-held belief that autonomous vehicles will lead to environmental and social benefits,” said Wu, who is the CEO of DeepMap (Wheeler is the CTO), in a statement. “We are delighted to work with the talented team at Generation. We consider Generation to be a value-added investor, whose insights and mission-aligned network will be of great advantage as we scale, especially in Europe.”

DeepMap is not exactly in stealth mode, but it also doesn’t disclose much about what it is working on specifically, nor how the funding will be used. (But it is hiring, mostly in engineering roles, in Palo Alto and Beijing.)

Companies like Waymo are expanding their autonomous driving tests, Lyft is buying companies to help ingest more driving data more easily and just this week Baidu announced new car plans with Volvo and Ford, but there are still some crucial pieces that need to be put in place for self-driving to become a wide-scale reality, and one of them is building systems that have an accurate reading of the roads they are driving on.

HD mapping will play a key role in that regard, helping make systems more accurate with real-time localization features that respond to road types and driving conditions. DeepMap says that it provides centimeter-specific accuracy using “real-world data, not models” and the ability to incorporate 3D landmark features and full 3D environments using “true LiDAR intensity and RGB values data” for simulation tools.

While DeepMap does not detail its products on its site, one report describes its offering as including hardware tools, software solutions, field data collection services, and a service that is able to translate the self-driving fleet data that companies are now in the process of collecting “into their own personalized HD maps.” The same report claimed that DeepMap charges about $5,000 per kilometer for mapping services in the U.S.

DeepMap is also not the only company working on addressing this need for better and more accurate mapping: mapping startup Camera is also raising money to build its service; DeepMap’s investor Nvidia is also working on this problem; and lvl5 is another name we’ve also seen mentioned in this context.

The funding, and these partnerships, will likely help DeepMap cement its position on the map, so to speak, as all of these continue to grow.

“DeepMap is perfectly placed to address the imminent needs of autonomous vehicles. These vehicles will require HD maps and localization modules which are real-time, scalable, economically-viable, and machine-readable, something which DeepMap can deliver through its unique approach,” said Lilly Wollman, co-head of Generation’s Growth Equity team, in a statement. “We are very excited to partner with one of the most technically impressive and experienced teams in the industry.”

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Scale, whose army of humans annotate raw data to train self-driving and other AI systems, nabs $18M

The artificial intelligence revolution is underway in the world of technology, but as it turns out, some of the most faithful foot soldiers are still humans. A startup called Scale, which works with a team of contractors who examine and categorise visual data to train AI systems in a two-sided marketplace model, announced that it has raised an additional $18 million in a Series B round. The aim will be to expand Scale’s business to become — in the words of CEO Alexandr Wang, the 21-year-old MIT grad who co-founded Scale with Lucy Guo — “the AWS of AI, with multiple services that help companies build AI algorithms.”

“Our mission is to accelerate the development of AI apps,” Wang said. “The first product is visual data labelling, but in the future we have a broad vision of what we hope to provide.”

Wang declined to comment on the startup’s valuation in an interview. But according to Pitchbook, which notes that this round actually closed in May of this year, the post-money valuation of Scale is now $93.50 million ($75 million pre-money).

The money comes on the back of an eventful two years since the company first launched, with revenues growing 15-fold in the last year, and “multiple millions of dollars in revenue” from individual customers. (It doesn’t disclose specific numbers, however.)

Today, Scale’s base of contractors numbers around 10,000, and it works with a plethora of businesses that are developing autonomous vehicle systems such as General Motors’ Cruise, Lyft Zoox, Nuro, Voyage, nuTonomy and Embark. These companies send Scale’s contractors raw, unlabelled data sets by way of Scale’s API, which provides services like Semantic Segmentation, Image Annotation, and Sensor Fusion, in conjunction with its clients LIDAR and RADAR data sets. In total, it says it’s annotated 200,000 “miles of data” collected by self-driving cars.

AV companies are not its only customers, though. Scale also works with several non-automotive companies like Airbnb and Pinterest, to help build their AI-based visual search and recommendation systems. Airbnb, for example, is looking for more ways of being able to ascertain what kinds of homes repeat customers like and don’t like, and also to start to provide other ways of discovering places to stay that are based not just on location and number of bedrooms (which becomes more important especially in cities where you may have too many choices and want a selection more focused on what you are more likely to rent).

This latest funding round was led by Index, with existing investors Accel and Y Combinator (where Scale was incubated), also participated in this Series B, along with some notable, new individual investors such as Dropbox CEO Drew Houston and Justin Kan (two YC alums themselves who have been regular investors in other YC companies). This latest round brings the total raised by Scale to $22.7 million.

When Scale first made its debut in July 2016 as part of YC’s summer cohort, the company presented itself as a more intelligent alternative to Mechanical Turk, specifically to address the demands of artificial intelligence systems that needed more interaction and nuanced responses than the typical microtask asked of a Turker.

“We’re honing in on AI broadly,” Wang said. “Our goal is to be a pick axe in the AI goldrush.”

Early efforts covered a wide spread of applications — categorization/content moderation, comparison, transcription, and phone calling as some examples. But more recently the company has seen a particular interest from self-driving car companies, and specifically the ability to look at, understand and categorise images of what might appear on a road with the kind of recognition that only a human can provide for training purposes. For example, to be able to identify a scooter versus a wagon, a piece of asphalt or an article of granite-colored clothing on a person that could potentially look like asphalt to an unsuspecting camera, or whatever.

“This sub-segment of AI, autonomous vehicles, really took off after we launched, and that segment has been the killer use case for us,” Wang said.

My experience in talking with autonomous car companies and those who work with them has been that many of them are extremely guarded about their data, so much so that there are entire companies being built to help manage this IP standoff so that no one has to share what they know, but they can still benefit from each other.

Wang says that the same holds for Scale’s clients, and part of its unique selling point is that it not only provides data identification services but does so with the assurance that its systems retain none of that data for its own or other companies’ purposes.

“We don’t share across different silos and are very clear about that,” Wang said. “These companies are very sensitive, as are all AI companies about their data and where it goes, and we’ve been able to gain trust as a partner because will not share or sell data to any other parties.”

Scale uses AI itself to help select contractors. “We have built a bunch of algorithms and AI to vet and train contractors,” Wang said. In the training, “we provide feedback and determine if they are getting good enough to do the work, and in terms of ensuring the quality of their work, our algorithms go through what they are doing and verify the work against our models, too. There are a lot of algorithms.”

For clients who are calling in data from the public web — for example Pinterest or Airbnb — Scale uses a broader contractor pool that could include stay-at-home moms, students or others looking for extra money.

For clients who are sensitive about the data that’s being analysed — such as the car companies — the conditions are more restricted, and sometimes include centres where Scale controls the machines that are being used as well as how the data sets can be viewed.

This is one reason why Scale isn’t simply focused on growing the numbers of contractors as its only route for growing business. “We’ve noticed that when you have people who spend more time on this they do better work,” Wang said.

Wang said the Series B funding will be used to expand the kind of work Scale does for existing customers in the area of visual data analysis, as well as to gradually add in other categories of data, such as text.

“Our first goal is to improve algorithms for customers today,” he said. “There is no limit to how accurate they want to make their systems, and they need to be constantly feeding their AI with more data. All of our customers have this, and it’s an evergreen problem.”

The second is to diversify more outside driving and the visual data set, he said. “Right now, so much of the success has been in processing imagery and robotics or other perception challenges, but we really want to be the fabric of the AI world for new applications, including text or audio. That is another use of funds to expand to those areas.”

“Fabric” is the operative word, it seems: “Scale has the potential to become the fabric that connects and powers the Artificial Intelligence world,” said Mike Volpi, General Partner, Index Ventures, in a statement. “For autonomous vehicles in particular, Scale is well-positioned to take over an emerging field of data annotation regardless of which players ultimately come out on top. Alex…has recruited a highly talented and technical team to tackle this challenge and their progress is evident in the marquee list of customers they’ve won in such a short amount of time.”

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GM and Cruise on track to field a self-driving ride hailing service by 2019

 GM and Cruise have articulated more specifically when they want to put their self-driving service on the roads, at today’s investor call for the company from San Francisco. GM said that they can make it happen within two years, with a fleet ready to go to work by 2019 based on the company’s current rate of progress. The commercial launch was previously revealed to happen within… Read More

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Momenta raises $46M Series B for its self-driving car software

 Beijing-based Momenta announced this morning that it raised a $46 million Series B round led by NIO Capital. Momenta produces self-driving car software that applies deep learning to mapping, path planning and object recognition problems. Shunwei Capital, Sinovation Ventures, Unity Ventures and Daimler also participated in the round. Quite a few U.S. startups are trying to create… Read More

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