Shares of Aurora Innovation (AUR.O) surged 35% on Tuesday following the announcement of a long-term partnership with Nvidia and Germany’s Continental to roll out driverless trucks. The deal, which is expected to significantly enhance Aurora’s self-driving technology for trucks, has boosted investor confidence, with the company’s market value climbing by approximately $4 billion, reaching a valuation of $11.17 billion.
The agreement also reflects the growing optimism surrounding autonomous driving technology for trucks, with Aurora’s stock nearly doubling over the past 12 months. Investors are betting on a rapidly expanding market for self-driving trucks as companies seek innovative ways to revolutionize logistics.
Aurora, a Pittsburgh-based company backed by Uber (UBER.N), already has collaborations with major truck manufacturers such as PACCAR (PCAR.O) and Volvo (VOLVb.ST) to develop and test its Aurora Driver system on their trucks. This partnership with Nvidia and Continental is seen as a key milestone in scaling the technology.
As part of the agreement, Nvidia’s DRIVE Thor computing platform, designed to centralize autonomous driving and assistive technologies, along with its automotive operating system DriveOS, will be integrated into Aurora’s system. Continental will mass-produce this integrated system by 2027, enabling large-scale deployment of self-driving trucks.
Aurora is targeting a launch of its autonomous trucking service in Texas in April. Despite the excitement, analysts caution that the autonomous driving space is highly competitive and requires significant investment. Nonetheless, the strategic alliances with Nvidia and Continental are seen as promising steps for Aurora as it looks to lead the way in the self-driving truck sector.
