Khosla-backed autonomous pod startup raises $170M, eyes further growth

Glydways, a San Francisco-based company focused on building personal autonomous pod systems for urban transportation, has raised $170 million in a Series C funding round as it continues to scale its infrastructure and technology.

The funding round was co-led by Suzuki Motor Corporation, ACS Group, and Khosla Ventures. Additional participation came from existing investors Mitsui Chemicals and Gates Frontier, as well as new investor Obayashi Corporation.

The company is also reportedly in discussions to secure an additional $250 million in funding, a move that could push its valuation beyond $1 billion, according to Bloomberg.

Founded in 2016, Glydways is developing a transportation system based on small autonomous pods that operate on dedicated lanes approximately two meters wide. The company claims its system can transport up to 10,000 passengers per hour per lane while significantly reducing infrastructure costs — potentially by up to 90% compared to traditional rail systems.

The startup has already begun advancing its concept toward real-world deployment. It plans to launch three operational pilot programs this year across Atlanta, New York City, and the United Arab Emirates, with broader commercial rollout targeted for 2027.

Glydways has attracted backing from several high-profile investors, including Sam Altman, who participated in the company’s earlier Series B round. Vinod Khosla, a key investor and board member, has previously expressed strong confidence in the model, suggesting that systems like Glydways could play a major role in reshaping urban mobility.

Khosla has argued that this approach offers a more effective long-term solution for cities than alternatives such as robotaxis, stating that such transport systems could eventually replace a large portion of urban car usage over the next 25 years.

“That sounds radical, but these entrepreneurs want to make that happen, and I’m pretty certain it will happen, and it’s not robotaxis; it’s not Waymo. It’s a much better solution.”