Uber Technologies Inc. (NYSE:UBER) shares are trading higher premarket on Tuesday after the ride-hailing company and NVIDIA Corporation (NASDAQ:NVDA) has entered into a strategic partnership aimed at advancing AI-powered autonomous vehicle (AV) technology.

The collaboration will leverage NVIDIA’s platforms, including Cosmos and DGX Cloud, to accelerate the development of autonomous driving solutions.

NVIDIA Cosmos is a cutting-edge platform that supports the development of physical AI systems such as robots and autonomous vehicles, eliminating cost and resource constraints and making it easier for developers to build and deploy AI models at scale.

Additionally, NVIDIA DGX Cloud provides a powerful, fully managed environment for developing AI models.

Also Read: Uber CFO says stock is undervalued, initiates accelerated $1.5 billion share buyback

By combining Uber’s mobility data with NVIDIA’s AI technology, both companies plan to develop more efficient and scalable AI models for the industry.

“Generative AI will drive the future of mobility and requires both massive data and very powerful computing power,” said Uber’s CEO Dara Khosrowshahi.

“By working with NVIDIA, we are confident we can help accelerate the timeline for safe and scalable autonomous driving solutions for the industry.”

In his keynote speech at CES 2025 on Monday, the CEO of NVIDIA said Jensen Huang predicted that self-driving vehicles would become “the first multi-trillion-dollar robotics industry.”

Nvidia will also provide its Drive AGX Orin supercomputer and operating system for advanced driver assistance features Toyota Motor CorpThe next generation models.

“NVIDIA brings two decades of automotive computing, security expertise and its CUDA AV platform to transform the multi-billion dollar automotive industry,” said Huang.

Price action: UBR shares were trading 2.26% higher at $67.81 in pre-market trading on Tuesday at last check.

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