Uber, cloud firm Nebius partner on autonomous vehicle investment

Uber and Nebius Group plan to invest up to US$375 million in Avride, the autonomous vehicle unit of Dutch cloud firm Nebius.

The funding includes strategic investment and commercial commitments, with additional capital possible if Avride meets certain milestones.

The deal aims to expand Avride’s driverless fleet to 500 cars and support its product development and international growth.

Avride, based in Austin, has partnered with Uber to deploy autonomous vehicles and delivery robots in several US cities.

A fleet of Hyundai Ioniq 5s equipped with Avride’s software will launch in Dallas by the end of 2025.

Uber’s investment, its first from an external partner, is structured as a convertible note, allowing Uber to convert it into equity later.

Avride will remain fully owned by Nebius.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

The 500-car Dallas plan needs federal and state approvals. The National Transportation Safety Board (NTSB) says the National Highway Traffic Safety Administration (NHTSA) requires automated driving system (ADS) developers to report crashes and incidents 1. NHTSA has set no minimum performance measures or testing protocols for ADS, so developers create their own safety procedures 1.
After the first fatal automated vehicle crash in 2016, the NTSB investigated many automation incidents 1. No self-driving cars are for sale to consumers today despite frequent marketing terms 1.
The News Article does not state the status of federal or Texas approvals. A fully driverless 500-car launch in Dallas depends on those timelines.

Running 500 Ioniq 5 electric vehicles (EVs) will take heavy-duty charging. Developers can partner with Oncor, the local transmission and distribution utility for Dallas, to lock sites and interconnections 2. Oncor says it is preparing its grid for transportation electrification load growth 2.
Texas utilities offer commercial charging rebates. Programs vary by service territory 3. Austin Energy, the municipal utility for Austin, provides up to $5,000 for direct current (DC) fast-charging installs 3. Entergy, an electric utility serving parts of Texas and the Gulf South, offers up to $1,500 3.
Texas has about 835 DC fast-charging stations, with most in big metros 3. Charging networks and depot builders can grab share by putting dedicated fleet sites near Avride’s first Dallas service zones before rivals show up.