Introduction

On March 5, a report from Bloomberg sent ripples across the tech world: Momenta, a leading autonomous driving technology firm, has quietly submitted its application for a Hong Kong Initial Public Offering (IPO), with ambitions to raise at least $1 billion. China International Capital Corporation (CICC) and Deutsche Bank are serving as the joint sponsors for this landmark listing.

This is no ordinary startup. Momenta’s investor lineup reads like a hall of fame for the global automotive and investment sectors: General Motors, Mercedes-Benz, Toyota, SAIC Motor, Tencent, Temasek Holdings, and Yunfeng Capital.

How did this decade-old Chinese AI company manage to secure backing from the world’s top automakers and investors?

The answer is both simpler and more profound than you might expect: When the German Chancellor personally endorses a Chinese tech firm’s technology, it signals that China’s autonomous driving ‘solution’ is no longer just catching up—it’s now a globally recognized leader.

The Unmanned Vehicle Era (WeChat ID: UnmannedVehicleEra) dives into this pivotal moment!

(Reference: ‘Autonomous Driving Tech Firm Momenta Clarifies: Hong Kong Listing Rumors Are False’)

I. Luxury Shareholder Group: Why Mercedes, Toyota, and GM Invested

Founded in 2016 by a team of AI engineers from Microsoft Research Asia, Momenta has taken a unique approach from the outset: its strategy is built on “One Flywheel, Two Legs.”

One leg focuses on mass-production autonomous driving solutions (Mpilot), partnering with automakers to “get technology into vehicles first.”

The other leg pursues fully autonomous driving (MSD), leveraging data from mass-produced vehicles to refine L4-level technology.

(Reference: ‘Momenta’s Cao Xudong: A ‘Super Brain’ Accelerates Autonomous Driving with a ‘Flywheel + Two Legs’ Strategy’)

This data-driven approach proved its worth even during the capital winter, attracting top-tier investors.

In 2017, Mercedes-Benz became the first international automaker to invest in Momenta.

In 2021, General Motors invested $300 million to accelerate autonomous driving technology for its China-market models.

Toyota, SAIC Motor, and Tencent joined later, alongside Temasek Holdings and Yunfeng Capital.

Why did these industry giants back a Chinese startup?

The answer lies in Momenta’s collaborative model.

CEO Cao Xudong explained that partnerships with automakers go beyond traditional supplier relationships, evolving into a “supplier + strategic partner” model. From product architecture design to system-level development and delivery, both sides collaborate deeply on technical roadmaps, cost structures, and feature designs.

This is not merely “tech licensing”—it’s true joint research and development.

II. German Chancellor’s ‘Test Ride’: China’s Top-Tier Tech Endorsement

On February 26, 2026, Beijing, Mercedes-Benz China Headquarters.

German Chancellor Olaf Scholz, accompanied by Mercedes Chairman Ola Källenius, took a ride in a new Mercedes S-Class equipped with Momenta’s intelligent driving system.

After the ride, Scholz praised: “This is fantastic! I believe this is one of the future mobility technologies.”

Källenius added: “China has an excellent innovation ecosystem, and its tech is developing rapidly.”

This was no ordinary commercial demonstration—it was the highest-level endorsement of Chinese intelligent driving technology by Germany’s top luxury brand.

When a leader of a nation renowned for “precision” and “standards” personally endorses a Chinese AI system, the message is clear:

China’s algorithm capabilities in intelligent driving now rival global leaders—and can even export solutions.

The partnership is now entering mass-scale deployment.

This intelligent driving system, covering highways, urban areas, and parking, debuts on the all-new Mercedes CLA and will roll out to nine new Mercedes models this year, including the electric GLC SUV and next-gen S-Class.

Future upgrades will utilize Momenta’s R6 reinforcement learning model.

This means many new Mercedes cars this year may feature “Chinese brains.”

III. IPO Details: $1 Billion, CICC + Deutsche Bank

Sources reveal key details about the IPO:

Listing Venue: Hong Kong

Fundraising Target: At least $1 billion (~RMB 6.9 billion)

Sponsors: CICC, Deutsche Bank

Progress: Secretly filed; currently meeting potential investors to gauge interest

Latest Valuation: Over $5 billion

Notably, Momenta secretly filed for a U.S. IPO in 2024 but allowed it to lapse. The shift to Hong Kong reflects a safer and more strategic approach.

(Reference: ‘China’s Tech Rising Star Momenta: Shifts IPO from U.S. to Hong Kong, Backed by Mercedes and Hyundai—How Will the Autonomous Driving Capital Landscape Evolve?’)

In late 2024, Horizon Robotics made its debut on the Hong Kong Stock Exchange.

Momenta’s arrival will solidify Hong Kong’s position as a global hub for autonomous driving listings—complementing Horizon’s chip focus with Momenta’s algorithm strength.

IV. ‘Flywheel Strategy’: Why It Works

In autonomous driving, “mass production” and “advanced tech” often seem at odds.

Firms chasing L4 autonomy struggle to deploy at scale; those focusing on mass-market ADAS face doubts about technological sophistication.

Momenta’s solution: The “Two-Legged Flywheel.”

One leg is mass-production ADAS (Mpilot). By partnering with Mercedes, Toyota, and GM, it deploys systems at scale, gathering real-world data.

This data fuels the other leg—L4 algorithm iteration for fully autonomous driving (MSD).

Cao revealed that Momenta’s focus has shifted from mass-production to L4 flywheel, targeting “vehicle-end autonomy” for Robotaxi by late 2025—a goal already achieved.

(Reference: ‘Autonomous Driving’s Second Half: Who Are the Potential New Players? Momenta’s Cao Xudong Predicts Future Trends’)

Unlike traditional Robotaxi firms relying on costly retrofits, Momenta chooses mass-production:

Reusing sensors from mass-produced vehicles to identify L4 safety edge cases; using mass-production chips and domain controllers to cut deployment costs.

“Our data flywheel effect is stronger than Tesla’s,” Cao claimed. Among industry suppliers, Momenta may be the first to reach 10 million units.

For safety, Momenta built a multi-layer defense:

Each feature has a dedicated team; development modules pass triple testing (intra-team, inter-team, and algorithm team), with hundreds of safety scenario tests for algorithm team approval.

For advanced driving’s edge cases, the R6 flywheel model boosts safety and comfort by 5–10x via reinforcement learning.

V. Significance for China’s Autonomous Driving Sector

Momenta’s IPO rumors aren’t isolated—they reflect China’s autonomous driving cohort rushing toward capital markets and tech export.

1. Hong Kong gains another tech heavyweight.

Following Horizon Robotics, Momenta will strengthen Hong Kong’s position as a global autonomous driving hub.

The chip-algorithm duo offers investors diversified options.

Black Sesame’s chips, already listed in Hong Kong, further enrich the ecosystem.

2. Global recognition of China’s tech prowess.

Mercedes’ partnership with Momenta isn’t a “face-saving joint venture” but genuine tech collaboration.

The German Chancellor’s test ride sealed top-tier approval.

As Cao said, the collaboration showcases a win-win fusion of German and Chinese strengths.

3. Autonomous driving enters the “deployment validation phase.”

From “storytelling” to “vehicle integration,” Momenta’s IPO coincides with its tech’s mass deployment.

Nine new Mercedes models launching this year will put Momenta’s solutions to the test with the world’s most discerning luxury car buyers.

Passing this test will prove the “China Solution’s” true value.

VI. Conclusion: China’s Global Tech Story Has Just Begun

$5 billion valuation, $1 billion fundraising, backed by Mercedes, Toyota, GM, and Tencent, with the German Chancellor’s endorsement—

Momenta isn’t telling a “local substitution” story but a “Chinese tech serving the world” narrative.

A decade ago, when a few engineers from Microsoft Research Asia founded this company, few imagined it would become the “brain” trusted by Mercedes, Toyota, and GM.

Today, with the German Chancellor in a Mercedes S-Class powered by Chinese AI, a new chapter has begun.

In short, the Unmanned Vehicle Era (WeChat ID: UnmannedVehicleEra) believes:

China’s autonomous driving IPO boom is just starting—and Momenta may be the most compelling story.

What do you think?

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