What was the first automobile that humans didn’t drive? According to James Peng, 58, who developed autonomous driving technology at China’s tech giant Baidu, the answer is “a horse-drawn carriage.” This inspiration led him to name his autonomous driving startup, founded in Silicon Valley in 2016, Pony.ai.
In an interview with The Chosunilbo on May 16 at a hotel in Seoul, Peng expressed his ambition to expand into the Korean market and grow his company further. “Our goal is to offer safe and convenient autonomous driving services to Korean consumers,” he said. Peng has a distinguished background, having worked at leading tech companies like Google and Baidu. He graduated from Tsinghua University in China and earned his Ph.D. from Stanford University before joining Google in 2005, marking the beginning of his career in the IT industry.
Peng’s interest in autonomous driving began during his time at Baidu’s U.S. branch. He wanted to create an AI that could drive like a human, rather than just react mechanically to stimuli. This vision led him to start his own company.
Nine years since its founding, Pony.ai has grown to 1,500 employees and is recognized for its Level 4 autonomous driving technology, which combines LiDAR and sensors with AI-based software to predict and control vehicle movement. Level 4 autonomy means the vehicle can drive itself without human intervention, except in extreme conditions like severe weather.
Pony.ai has been operating a paid “robotaxi” service without drivers in cities like Beijing and Guangzhou for nearly two years. Over its eight years, the company has raised $5.2 billion in investments, with Toyota contributing $400 million and the Saudi Public Investment Fund investing $100 million. According to Chinese economic media Caixin, Pony.ai was valued at $8.5 billion in its last funding round in October.
Peng stated, “To become a global company, we plan to make a significant investment in South Korea, the first market outside China and the U.S.” Pony.ai aims to introduce robotaxi services and autonomous buses or trucks on fixed routes in South Korea. “We plan to establish R&D and data centers in Korea and hire local talent,” Peng said. He noted the high demand for autonomous public transportation due to a shortage of bus drivers and the heavy and complex traffic in Korea.
Pony.ai is preparing a 35 billion won investment in South Korea. It participated in a 5 billion won capital increase for its Korean partner, GemVaxLink, in March and plans to acquire 30 billion won in convertible bonds by August.
However, challenges remain. The automotive industry raises concerns about whether a foreign company can effectively navigate government and local regulations, given that autonomous driving is closely tied to safety. Additionally, GemVaxLink, Pony.ai’s Korean partner, has primarily focused on wireless internet solutions and luxury goods importation, with no direct experience in autonomous driving services.
Competition with Korean companies like Hyundai and Kia, which are also developing autonomous driving technology, is inevitable. Peng acknowledged, “Autonomous driving is a heavily regulated industry, and we always have to convince stakeholders. The key is to demonstrate that our service is useful and safe, wherever and whenever.”
