Chinese self-driving startup Pony.ai announced on Wednesday that it has obtained an investment of $100 million from NEOM - a smart city being built in northwestern Saudi Arabia - and the NEOM Investment Fund.

Additionally, a joint venture will be established for autonomous technology solutions for the region. Pony.ai and NEOM will develop, manufacture and deliver autonomous driving services, advanced vehicles and smart vehicle infrastructure in NEOM and key markets in the Middle East and North Africa region.

The JV plans to establish autonomous driving vehicle manufacturing and R&D facility. NEOM is an ideal strategic industrial location for the development of Pony.ai's autonomous vehicle technology within the region, the company said.

Peng Jun, co-founder and CEO of Pony.ai, said this collaboration marks a milestone in Pony.ai's globalization strategy and will advance the development of the global autonomous driving industry into a new stage.

"This investment aligns with the ambitious plans announced by NEOM to achieve autonomous transportation solutions for the region. Pony.ai's autonomous driving technology is already available today, and we are excited to be able to utilize it in NEOM in the near future," Majid Mufti, CEO of the NEOM Investment Fund.