Hyperloop One said Branson's Virgin Group would take the company global and rebrand itself as Virgin Hyperloop One in the near future.
Hyperloop One's co-founders, executive chairman Shervin Pishevar and president of engineering Josh Giegel, have previously worked at Virgin Galactic.
Virgin Galactic is Branson's space company, which in 2016, was granted an operating license to fly its passenger rocketship with the world's first paying space tourists once final safety tests are completed.
"Virgin Hyperloop One will be all-electric and the team is working on ensuing it is a responsible and sustainable form of transport," Virgin Group said in a statement.