This independent startup backed by Khosla has raised $170 million. Now, she aims to achieve more.

Glydways, a San Francisco-based startup, has developed self-driving pods designed to operate on dedicated two-meter-wide lanes in cities. It raised $170 million In a Series C funding round.

The round was co-led by Suzuki Motor Corporation, ACS Group, and Khosla Ventures. Existing investors Mitsui Chemicals, Jets Frontier and new investor Obayashi Corporation also participated.

Now, it appears that the startup is already in discussions to raise another $250 million in funding that would push its valuation to over $1 billion. Bloomberg reported.

Glydways has made progress with its concept, which it claims can transport up to 10,000 people per hour per lane and reduce infrastructure costs by up to 90% compared to rail. The startup, founded in 2016, is launching three pilot projects this year in Atlanta, New York City, and the United Arab Emirates. The company aims to launch large-scale operations in 2027.

The new idea has attracted influential backers, including OpenAI founder Sam Altman, who invested in Glydways’ Series B. Investor Vinod Khosla, one of the startup’s board members, previously told TechCrunch that Glydways — not robots — is the best solution for cities. Khosla noted that the startup’s transportation system could replace most cars in most of our cities within the next 25 years.

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