Aurora Innovation, an autonomous trucking company, has witnessed a significant stock surge, rising as much as 30% on Tuesday following the announcement of a partnership with technology giant Nvidia. The collaboration aims to facilitate the deployment of self-driving trucks at scale, potentially reshaping the logistics landscape.
Aurora's focus is on developing AI-powered technology systems specifically designed for autonomous driving, particularly for large vehicles such as 18-wheelers. The hardware necessary for these systems is being manufactured by the automotive supplier Continental, which has committed to mass-producing Aurora’s systems by the year 2027.
During a keynote address at the Consumer Electronics Show (CES), Nvidia CEO Jensen Huang highlighted the advancements in the field by stating that both Aurora and Continental will be utilising Nvidia’s latest autonomous vehicle chip, known as DRIVE Thor. This chip employs Nvidia’s innovative Blackwell chip architecture and is tailored for the transportation industry’s most demanding, data-intensive workloads. "The autonomous vehicle revolution is here,” Huang remarked, affirming that the DRIVE Thor chips are “now in full production.”
Aurora went public in 2021 via a merger with a Special Purpose Acquisition Company (SPAC) that involved co-founder of LinkedIn, Reid Hoffman. The merger initially valued the company at $13 billion. However, after reaching a peak share price just above $13 in late 2021, Aurora's stock experienced a significant downturn alongside a broader decline in the autonomous vehicle sector. Encouragingly, shares have rebounded, gaining over 150% in the past year alone.
Currently, Aurora is testing approximately 30 autonomous trucks on roads in Texas, albeit with human drivers supervising the operation while the software is evaluated. Initially, the company planned to have 20 fully self-driving haul trucks operational by the end of 2024, but this timeline has been adjusted. Aurora now aims to deploy “at least 10” trucks by April 2025, as it continues to conduct its internal safety assessments.
According to a spokesperson, Aurora already complies with the self-driving vehicle standards set forth in Texas regulations. The spokesperson clarified common misconceptions pertaining to the regulatory environment, explaining, “There’s a misconception that Texas is the wild wild west. It isn’t. We work closely with the Texas Department of Transportation and the Texas Department of Public Safety to ensure that we are aligned as we work towards the deployment of self-driving technology.” They further emphasised the importance of a strong partnership with regulators and law enforcement, asserting, “Commercial AVs are a regulated industry and as a result we want to make sure that the partnership with our regulators and law enforcement is strong.”
The announcement of the partnership with Nvidia marks a pivotal development in Aurora's plans to advance its self-driving technology and expand its operational capabilities, signalling a potentially transformative period for the autonomous trucking industry.
Source: Noah Wire Services