Motional, the autonomous vehicle company formed through a multibillion-dollar partnership between Hyundai Motor Group and Aptiv, is staging a major comeback by placing artificial intelligence at the core of its robotaxi strategy. After a turbulent period marked by missed launch deadlines, the exit of Aptiv as a financial backer, and significant workforce reductions, the company has reset its trajectory with a renewed focus on scalable, AI-driven self-driving technology. Motional now says it is targeting the end of 2026 to roll out a fully driverless commercial robotaxi service in Las Vegas.

The company’s recent challenges were severe. Following a missed commitment to deploy a driverless service with Lyft, Motional underwent a major restructuring that cut its workforce by about 40 percent in 2024, shrinking staff numbers from roughly 1,400 at its peak to fewer than 600. Hyundai responded by injecting an additional one billion dollars to stabilize operations. At the same time, rapid advances in artificial intelligence were reshaping how autonomous systems could be built, forcing Motional to reconsider its traditional robotics-heavy approach.

According to Motional President and Chief Executive Officer Laura Major, the company made a deliberate decision to pause commercial expansion in order to rebuild its technology stack around AI foundation models. Rather than relying on numerous disconnected machine-learning and rules-based systems, Motional is now integrating its capabilities into a unified, end-to-end architecture. This approach, Major explained, allows the company to generalize more easily across cities and driving conditions while reducing costs, making large-scale deployment more feasible.

Motional has already begun testing its rebooted system through an internal robotaxi service operated by employees, with human safety operators still present. Plans are underway to open the service to the public later this year through a ride-hailing partner, before fully removing the safety driver by the end of the year. A recent demonstration drive in Las Vegas showcased measurable progress, with an autonomous Hyundai Ioniq 5 navigating complex hotel pickup zones—areas previously off-limits to Motional’s self-driving operations.

While refinements are still needed, including improvements to in-car displays and decision-making speed in congested scenarios, Motional maintains it is on a sustainable path forward. Backed by Hyundai’s long-term commitment, the company views robotaxis as only the first step. The broader vision, Major said, is to eventually bring Level 4 autonomous driving—where no human intervention is required—into personally owned vehicles, signaling ambitions that extend far beyond ride-hailing alone.

Source: Techcrunch