Uber's latest robotaxi bet

Good news for all the Black Mirror fans out there: a futuristic driverless society might be closer than you think.

Today, Uber revealed plans to invest up to $1.25 billion in EV maker Rivian Automotive, starting with an initial $300 million stake pending regulatory approval. As part of the deal, Uber will purchase 10,000 autonomous R2 vehicles, with the option to add up to 40,000 more starting in 2030.

The companies plan to deploy up to 50,000 R2 robotaxis across 25 cities in the US, Canada, and Europe through 2031—exclusively on Uber’s platform—with San Francisco and Miami expected to launch first in 2028. Rivian shares rose 3.8% on the news, while Uber lost 1.72%.

Nvidia drives the shift

It’s the latest bit of big news for Uber, which also just announced a partnership with Nvidia to roll out robotaxi services in 28 cities globally by 2028. Nvidia provides the “brains” behind many of these driverless systems, supplying the chips and software that power autonomous driving, while Uber handles the wheels.

“The autonomous vehicle revolution is here—the first multitrillion-dollar robotics industry,” CEO Jensen Huang said at Nvidia’s GTC conference on Monday.

Nvidia is emerging as a key enabler of physical AI in the robotaxi ecosystem, with Huang calling this the “ChatGPT moment” for self-driving cars. Nvidia’s DRIVE Hyperion platform, a full-stack autonomous driving system, is already used by automakers including BYD, Geely, Isuzu, and Nissan, and it has expanded partnerships with Hyundai and Kia.

The robotaxi race

Today’s Rivian partnership marks the latest push from Uber, which has struck deals with more than two dozen companies, most recently adding Amazon’s Zoox to its network—another player competing alongside Tesla and Alphabet’s Waymo in the fast-growing robotaxi market.

While some fear a winner-takes-all outcome in autonomous driving, Deutsche Bank’s Benjamin Black says Nvidia’s broad adoption enables a more decentralized supply of self-driving vehicles, helping avoid a “doomsday scenario” where one player dominates. That benefits Uber: more suppliers, more access to autonomous vehicles across its platform.

BofA’s Justin Post echoed that view, saying Uber’s stock multiple could rise as broader supply lowers costs and makes it easier for the company to scale its robotaxi fleet.

For now, Uber is quickly becoming the stock to watch while the driverless future starts to take form.—SY