100% YoY Growth Since Inception | Applied Intuition

Applied Intuition: The Quiet Harbinger of Autonomous Driving

Autonomous driving is hitting a fever pitch. Waymo is giving 100k rides per week, Kodiak’s autonomous trucks have covered 50k miles, car manufacturers are pouring billions into automation. Almost every vehicle-related company is wondering how autonomy will affect their business.

Enter: Applied Intuition, the Silicon Valley unicorn powering the autonomous driving revolution. The $6 billion company helps vehicle manufacturers deploy autonomous driving and AI-enabled software. The company has grown 100%+ every year since inception, is profitable, has a $1 billion war chest, and is backed by a16z, General Catalyst, Lux Capital, and others.

Let’s explore how they’ve rocketed into category-leading position.

Company Overview

Applied Intuition is a vehicle software platform. The company specializes in the development, testing, and deployment of advanced autonomous and AI-enabled software solutions. It was co-founded by Qasar Younis, a 3x founder with automotive experience, and Peter Ludwig, a former Google engineer.

Headquartered in San Francisco, CA, Applied Intuition has raised $600+ million from investors such as Andreessen Horowitz, General Catalyst, Lux Capital, Coatue, and Elad Gil. It was last valued at $6.0 billion post-money after its $250 million Series E in March 2024.

Market Trends

Autonomous driving is booming

McKinsey projects that autonomous driving (AD) and advanced driver assistance systems (ADAS) will generate $300-400 billion in global revenue by 2035, driven largely by Level 4 (high driving automation) autonomy. This reflects a 5-10x increase from 2022 levels. This projection only includes the private-passenger car segment, and therefore understates the total commercial + consumer opportunity for autonomous driving.

Auto companies are investing big bucks

Both automotive original equipment manufacturers (OEMs) and start-ups have invested $106 billion in autonomous-driving capabilities since 2010. Below is a snapshot of these investments:

• Hyundai is investing $5 billion into autonomous driving, robotics, AI, and air mobility

• GM acquired Cruise for $1 billion in 2016.

• Toyota is investing $2.8 billion into self-driving technology.

• Porsche invested in Applied Intuition’s $250 million Series E.

• Waymo has raised $10.5 billion to date.

OEMs need help with autonomy

75% of respondents to a McKinsey survey said the rise of strategic partnerships for the development of autonomous technologies was highly likely. Incumbents will rely on new technology providers to achieve their autonomous and intelligent driving goals.

Problem Being Solved

Automotive companies want to deploy autonomous driving. These companies need a trusted central hub for the development, testing, and deployment of mission critical vehicle software. Additionally, auto companies want to deliver safe and compliant customer experiences.

Solution

Applied Intuition provides the toolchain for AD/ADAS and vehicle software. The company offers three main products: 1) advanced driver assistance system (ADAS) and autonomous driving (AD) development platform, 2) vehicle software platform, and 3) off-road autonomy stack.

1) ADAS and AD Development Platform

The ADAS and AD development platform allows engineering teams to develop and test ADAS and AD systems at scale. The platform provides a toolchain that spans the entire development cycle, from simulation to data exploration to validation. Customers benefit from shorter development cycles and increased system safety.

2) Vehicle Software Platform

This platform enables automakers and suppliers to develop, deploy, and update vehicle software and AI applications. This includes both on-board software for custom applications and off-board software for over-the-air updates, data logging, and maintenance of digital twins. This platform enables next-generation consumer experiences, accelerated development cycles, and the ability to build and deploy AI applications.

3) Off-Road Autonomy Stack

This product allows customers to transform any off-road fleet into an autonomous operation. It includes a modular off-road autonomous vehicle stack that supports semi or fully autonomous vehicle use cases. Customers benefit from a seamless modular integration and a whitebox model.

Verticals

Applied Intuition addresses customers across automotive, trucking, defense, construction & mining, and agriculture.

Customers

Below is a list of publicly announced customers:

• Auto Original Equipment Manufacturers (OEMs)

  • Audi

  • General Motors

  • Porsche

  • Nissan

  • Toyota

  • Volkswagen

• Auto Suppliers

  • Ambarella

  • Luminar

  • Valeo

• Trucking & Logistics

  • Daimler

  • Einride

  • Gatik

  • Isuzu Motors

  • Kodiak Robotics

  • Outrider

• Driverless Vehicles

  • May Mobility

  • Motional

  • RideFlux

• Defense

  • US Air Force

  • US Army

Traction

Applied Intuition counts 18 of the top 20 automotive OEMs as customers. The company reports that it has maintained “sustainable triple-digit percentage growth year-over-year and [has] done so profitably.” Applied Intuition has 400 employees. Applied Intuition has not publicly announced revenue or other financial metrics.

Team

Qasar Younis, Founder & CEO

• Qasar is a 3x founder and formerly COO & Group Partner at Y Combinator. Previously he was Group Product Manager, Google Maps at Google and began his career as an engineer at General Motors. Qasar holds an MBA from Harvard Business School and a BS in Mechanical Engineering from Kettering University.

Peter Ludwig, Co-founder & CTO

• Peter was previously Product Manager and SWE at Google in the Google Maps and Android Automotive divisions. Peter holds an MS and BS in Engineering and Computer Science from Michigan.

Applied Intuition’s Board of Directors includes:

• Marc Andreessen, Andreessen Horowitz

• Hemant Taneja, General Catalyst

• Bilal Zuberi, Lux Capital

Key Strengths

• Scale & Profitability: Applied Intuition counts 18 of the top 20 auto OEMs as customers, is profitable, and has $1 billion to invest. The company is quickly establishing itself as the category leader in autonomous vehicle software development and deployment.

• Experienced Team: Qasar is a 3x founder with hands-on experience in the automotive industry at General Motors. Qasar and Peter presumably have experience working together given they overlapped at Google Maps.

• Sticky Platform: Applied Intuition provides mission-critical software for automotive OEMs and other customers. These customers use the platform to deliver safe and reliable experiences to their end-customers and are likely to experience high switching costs.

• Massive Market: Companies have spent $106 billion on autonomous driving initiatives, and the personal-car market for AD and ADAS is projected to be $300-400 billion by 2035. Applied Intuition’s market is much larger given its additional use cases across commercial auto, trucking, defense, construction & mining, and agriculture.

• Inorganic Growth Opportunities: Applied Intuition’s $1 billion war chest will allow it to continue to pursue acquisitions. It has made at least three acquisitions, listed in the Capital History section below.

Key Risks

• Competition: AD/ADAS data and model providers are increasingly offering broader platforms for development, testing, and deployment. If a competitor is able to build a one-stop shop with data, models, and a development platform, Applied Intuition’s platform could lose relative value. This risk is mitigated by Applied Intuition’s scale, stickiness, and acquisition capability.

• Regulation: A 2021 McKinsey survey of automotive participants showed that 60% of respondents thought regulation would be the largest bottleneck to autonomous driving. This risk is mitigated by US regulator’s cooperation/tolerance with autonomous driving startups such as Waymo, Kodiak, and others.

• Lack of Consumer Demand for AD: A July 2024 Forbes study found that 61% of Americans wouldn’t trust a self-driving car with their loved ones or children. If demand doesn’t meet expectations, OEM investment in AD and ADAS technology could be hindered. This risk is mitigated by autonomous driving’s demonstrated success including Waymo giving 100k rides per week across LA, San Francisco, and Austin.

Competition

Primary Competition: AD & ADAS Development Platforms

• Foretellix

  • Description: Safety-driven verification/validation for ADAS and AD. Foretellix services automotive, trucking, and mining customers including Toyota, Volvo, and Isuzu.

  • Applied Intuition Differentiation: Foretellix appears to be a close competitor with a robust platform of simulation and development of AD and ADAS. Applied Intuition differentiates through its penetration of blue-chip customers, broader suite of use cases, and $1 billion balance sheet.

  • Scale: $134m raised to date.

• Cognata

  • Description: Autonomous driving simulation platform for automotive, defense, smart cities, agriculture, construction & mining, and AMR (warehouse).

  • Applied Intuition Differentiation: Applied Intuition has greater scale, blue-chip logos, and balance sheet. Cognata’s funding appears to have stalled with a $19m Series B raised in 2018 followed by a $4m round in 2023.

  • Scale: $28m raised to date.

• Apex.AI

  • Description: Software development kit for mobility applications that abstracts complexity away from the developer.

  • Applied Intuition Differentiation: Apex’s value proposition differs given it is more of an SDK vs. a platform.

  • Scale: $74m raised to date.

Secondary Competition: Model & Data Providers

• Wayve

  • Description: Wayve specializes in developing AI foundation models for autonomous driving. Its platform helps OEMs and fleet owners transition to autonomous driving.

  • Applied Intuition Differentiation: Wayve appears to deliver similar value to Applied Intuition in enabling autonomous driving for OEMs, though is more focused on model creation. Wayve could be a partner or a competitor.

  • Scale: $1.3bn raised to date.

• Phantom AI

  • Description: Provider of deep learning computer vision solutions and model creation, selling to OEMs.

  • Applied Intuition Differentiation: Phantom appears more focused on model creation vs. a full development platform.

  • Scale: $86m raised to date.

• Parallel Domain

  • Description: Synthetic data provider to test and train AI systems for auto, drones, robotics, agriculture, and security.

  • Applied Intuition Differentiation: Parallel appears to be a pure-play data provider vs. a full development platform.

  • Scale: $44m raised to date.

• Waabi

  • Description: Autonomous trucking AI technology.

  • Applied Intuition Differentiation: Waabi appears to specialize in AI model creation, not software development & deployment.

  • Scale: $283m raised to date.

• Nauto

  • Description: Camera technology that detects fleet driver drowsiness and other external risk.

  • Applied Intuition Differentiation: Nauto focuses on a more narrow use cases than Applied Intuition’s broad vehicle software platform.

  • Scale: $171m raised to date.

• NetraDyne

  • Description: AI-powered fleet safety technology for modern fleets.

  • Applied Intuition Differentiation: Similar to Nauto with a more narrow focus on fleet safety.

  • Scale: $272m raised to date.

Other: Smaller Players to Watch

• Inverted AI (founded 2018, $5m raised).

• dRISK (founded 2014, $3m raised).

Capital History

• Fundraise History

  • Jul 2024: $300m Secondary transaction with participation from Fidelity, BOND Capital, and others.

  • Mar 2024: $250m Series E at $5.8B pre-money led by Porsche Ventures, Lux Capital, and Elad Gil.

  • Nov 2021: $175m Series D at $3.4B pre-money led by Coatue, Addition, and Elad Gil.

  • Oct 2020: $125m Series C at $1.1B pre-money led by Andreessen Horowitz, Lux Capital, and General Catalyst.

  • May 2019: $40m Series B at $212m pre-money led by General Catalyst.

  • Oct 2017: $11.5m Series A at $25m pre-money led by Andreessen Horowitz.

  • ~2017: Neo Accelerator.

• Acquisition History

  • May 2023: acquired Embark Trucks, the autonomous trucking technology company, for $71m.

  • Mar 2023: acquired SceneBox, the data management and operations platform for machine learning, for an undisclosed amount.

  • Mar 2022: acquired Mechanical Simulation Corporation, the vehicle dynamics simulation software, for an undisclosed amount.

Conclusion

Applied Intuition is a leader in the vehicle software development market, strategically positioned within the rapidly expanding autonomous driving market. The company’s veteran leadership, coupled with its mission-critical and robust platform, has enabled it to meet the complex demands of the industry. To maintain its competitive edge, Applied Intuition must continue enhancing its platform and exploring strategic acquisitions. Given its position of strength in a growing market, Applied Intuition is poised to remain a key player driving the future of autonomous vehicles.