Proactive Investors - Nvidia Corp (NASDAQ:NVDA, ETR:NVD) and Uber Technologies Inc (NYSE:NYSE:UBER, ETR:UT8)’s partnership around autonomous driving is likely to accelerate the journey to achieving driverless technology, according to Bank of America (NYSE:BAC).
Unveiled at CES 2025 in Las Vegas, the partnership was set to see Uber adopt Nvidia’s fresh Cosmos video-generating tool and AI supercomputing platform DGX.
These would be used in the development of autonomous driving technologies, with Cosmos having been tipped as a cheaper alternative to real-world data in training cars.
Though details were limited, Bank of America noted Uber was likely to “commit significant resources” in turn, including through sharing vast swathes of data.
Bank of America added such a move to offer ride images and videos would help the wider industry achieve level four, or fully automated, self-driving technology more quickly.
Indeed, Nvidia had penned other deals with Toyota (NYSE:TM), self-driving truck firm Aurora and automotive supplier Continental, analysts pointed out.
Uber has also signed a string of deals with some 14 partners over the past year, including with robotaxi firm Waymo and Aurora.
“Uber's data could also have an advantage in addressing the ridesharing use-case, with higher quality data on the most important trips and routes for ride-hailing,” analysts said.
Bank of America reiterated a ‘buy’ rating and US$90 share price target for Uber on the back of the news, and highlighted the stock as a ‘top pick’ for 2025.
“In our view, the variety of autonomous vehicle partnerships and products announced at CES underscores our thesis that multiple auto original equipment manufacturers will integrate level four self-driving technology long term, providing Uber with multiple available partners in autonomous ridesharing.”
Uber shares were down 2.7% at US$64.37 on Wednesday, while Nvidia slipped 0.2% to US$139.82.