Investors And Military Drive The Next Wave Of Off-Road Autonomous Vehicles

Early-stage startups are carving out a new niche in the autonomous vehicle technology sector, focusing on off-road applications.

Two such startups, Seattle-based Overland AI and New Brunswick, Canada-based Potential, are leading the charge in this emerging segment, according to a recent TechCrunch report. Both companies are developing autonomous driving software that doesn’t rely on traditional aids like detailed maps, extensive training data, or remote assistance.

The U.S. Department of Defense and venture capital investors have shown interest in this new approach. Overland AI, which is creating a self-driving system for military operations, received up to $18.6 million from the U.S. Army's Defense Innovation Unit in April. The funds will be used to develop a prototype autonomous software stack for its robotic combat vehicle program over the next two years.

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Overland AI also raised a $10 million seed round led by Point72 Ventures this week. The funds will be used to expand the team and continue developing OverDrive, the company's autonomy stack, according to CEO and founder Byron Boots.

Meanwhile, Potential, which is developing advanced driver-assistance systems for off-road environments, has raised a CA$2 million (~$1.5 million) extension to its seed round led by Brightspark Ventures. This brings Potential's total funding to CA$8.5 million (~$6.2 million).

Other startups, such as Polymath Robotics, Pronto.ai, Bear Robotics, and Outrider, are also applying autonomous vehicle technology to off-road environments. Alexei Andreev, managing director at Autotech Ventures, stated that the firm is “absolutely deploying capital in off-road autonomy.”

Off-road autonomy has also found a friend in defense. Overland AI is a byproduct of the DARPA program, and its software is being tested for defense and national security applications.

Potential’s core platform, Terrain Intelligence, uses computer vision to help vehicles navigate complex terrain and changing surface conditions. The company is working with Tier 1 suppliers and OEMs to license its software and integrate it directly into vehicles.

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