Why investors are pumping money into risky self-driving startups

Self-driving car startup Aurora is ready to go public in a reverse merger with Reinvent Technology Partners Y, a special acquisition company (SPAC).

The merger will give Aurora an infusion of cash to develop autonomous trucks and, later, self-driving passenger cars.

Going public is not the norm for companies that don’t have a working and profitable business model. And what makes Aurora’s reverse IPO even more odd is that it comes at a time that the self-driving car industry is struggling with missed deadlines, shuttered projects, unsettled technical challenges, growing cash-burn rates, and loss of public trust.

The race to pump cash in self-driving car startups can either indicate confidence in a technological breakthrough in the near term, or a desperate run to keep operations afloat until someone figures out how to overcome one of the greatest challenges of artificial intelligence.

Read the full analysis on TechTalks.

For more on self-driving cars: