Altman-Backed Startup to Raise $250 Million for Robocar Networks

Glydways Inc., the robocar startup backed by Sam Altman, is in talks to raise $250 million in a new funding round that would value the company at $1 billion or more, underlining the high hopes and daunting hurdles of developing closed-loop self-driving car systems.

The discussions come on the heels of a $170 million raised in a Series C that valued the company at almost $700 million, founder and co-Chief Executive Officer Mark Seeger said in an interview. The Series C round was co-led by Suzuki Motor Corp., Khosla Ventures and Spanish construction conglomerate Grupo ACS. Glydways’ capital-intensive development plans span more than 20 potential projects under negotiation globally, and it’s drawn particular interest in Japan, with new backer Obayashi Corp. joining Suzuki and Mitsui Chemicals Inc. in seeking to tap a hot autonomous-driving arena.