Aurora Innovation's shares of self-driving truck technology are escalating following a fresh agreement with Nvidia.
Autonomous trucking startup Aurora Innovation saw its shares surge on Tuesday, following a major deal with tech giant Nvidia and auto supplier Continental. The companies plan to build self-driving trucks using Nvidia's computing hardware as a key component of Aurora's self-driving system.
As of 10:15 a.m. ET, Aurora's shares were up approximately 30.3% from their previous closing price.
Taking a strategic leap in self-driving technology
By late Monday night, Aurora had announced a "long-term strategic partnership" with Nvidia and Continental. Under the agreement, Nvidia's DRIVE Thor systems-on-a-chip will feature in Aurora's self-driving system, known as the Aurora Driver. This system, which is almost complete, will power a driverless trucking service in Texas in April.
Previously, Aurora and Continental had stated that they would begin mass-producing Aurora's self-driving system, designed for retrofitting on existing semitrucks, starting in 2027.
Aurora's quiet progress in the driverless trucking sector
Investors have perhaps overlooked Aurora in recent years, despite its steady progress in automating heavy trucks. With a dearth of qualified commercial truck drivers, Aurora is steadily pushing towards its goal of safely automating vehicles on America's highways.
This is a chance for investors to reconsider Aurora, according to analysts. It is a reputable company with a compelling vision and the technology needed to revolutionize the trucking industry... and it's almost ready to put it into action.
Insight: Strengthening the Ecosystem
The partnership with Nvidia and Continental builds on Aurora's robust alliance with chip supplier AMD and Liberty Mutual Insurance. Together, they form a powerful ecosystem, enabling Aurora to successfully deploy autonomous trucks at scale.
Deep Dive: Bringing Silicon Valley Expertise to the Road
Nvidia brings its advanced AI and computing capabilities, while Continental's experience in the automotive industry is instrumental in scalable development and mass production of Aurora's self-driving hardware. This collaboration puts Aurora in a strong position to seize opportunities in the rapidly evolving autonomous trucking market.
Bonus Fact: Market Potential
Aurora expects the Aurora Driver to address a 50B VMT (vehicle miles traveled) serviceable addressable market by 2028. The initial deployment will focus on high-mileage routes with hours-of-service restrictions, representing around 60% of the anticipated miles.
Footnote
[1] Nvidia: Innovating for the Future[2] Continental: A Global Powerhouse in the Automotive Industry[3] Aurora Innovation: Overview of the Partnership[4] Aurora's Market Opportunity in Autonomous Driving[5] Nvidia and Continental Push Forward on Autonomous Trucking Collaboration
- The surge in Aurora's shares on Tuesday can be attributed to its strategic partnership with tech giant Nvidia and auto supplier Continental, aimed at building self-driving trucks using Nvidia's computing hardware.
- Analysts view this partnership as an opportunity for investors to reconsider Aurora, a reputable company with a compelling vision, advanced technology, and a robust alliance with chip supplier AMD and Liberty Mutual Insurance.
- By 2027, Aurora plans to mass-produce its self-driving system for retrofitting on existing semitrucks, targeting a significant market potential of 50 billion vehicle miles traveled (VMT).
- The collaboration between Aurora, Nvidia, and Continental will enable Aurora to seize opportunities in the rapidly evolving autonomous trucking market, leveraging Nvidia's AI and computing capabilities and Continental's expertise in the automotive industry.
