Uber Technologies, Inc. (UBER.US) boosts its self-driving layout by investing $375 million in Avride in partnership with Nebius (NBIS.US).

Uber Technologies, Inc. (UBER.US) and Dutch cloud infrastructure company Nebius (NBIS.US) plan to jointly invest up to $375 million to develop Nebius' autonomous driving car subsidiary, Avride. A spokesperson for Avride stated that this new funding (including strategic investments and commercial commitments) will help accelerate the expansion of Avride's autonomous driving fleet, with the aim of reaching a scale of 500 vehicles. If Avride meets specific milestones agreed upon by both parties, the two companies will further increase their investment, bringing the potential total investment to $375 million. The company also stated that this investment will support Avride's product development and expansion into new markets. This investment by Uber Technologies, Inc. builds upon the longstanding collaboration between the company and Avride based in Austin. The two companies are working together to deploy autonomous vehicles for food delivery with Siasun Robot & Automation. They have already launched sidewalk deliveries with Siasun Robot & Automation in Jersey City, Austin, and Dallas, and plan to introduce a fleet of autonomous driving vehicles fitted with Avride software on the Hyundai Ioniq 5 model in Dallas before the end of the year. Avride declined to disclose the specific amount of investment from Uber Technologies, Inc. This investment marks Avride's first external partner funding. A spokesperson for Avride stated that the transaction structure is in the form of convertible bonds, meaning that Uber Technologies, Inc. will have the option to convert its investment into equity in the future. The spokesperson added that Avride will continue to operate as a wholly-owned subsidiary of Nebius. Uber Technologies, Inc. CEO Dara Khosrowshahi previously stated that the ride-hailing giant will continue to invest in the autonomous driving technology ecosystem, betting on a future where human driving and autonomous driving coexist. To date, Uber Technologies, Inc. has invested or committed funds to several autonomous driving and drone companies, including Wunong Zhixing (WRD.US), Xiaoma Zhixing (PONY.US), Lucid Group (LCID.US), Nuro, and Flytrex, as well as fleet companies operating or owning autonomous driving vehicles. Some of these deals have involved amounts in the hundreds of millions of dollars, such as the partnerships with Lucid and Nuro. Since selling its own autonomous driving department in 2020, Uber Technologies, Inc. has established partnerships with over a dozen autonomous driving companies to compete with companies like Alphabet's Waymo and Tesla, Inc. (TSLA.US). It is worth noting that Uber Technologies, Inc. has also established partnerships with Waymo in some U.S. markets.