Uber and Rivian (RIVN) have inked a new billion-dollar deal with automaker Rivian to further expand its robotaxi fleet. Per reports, Uber will invest up to $1.25 billion in Rivian in exchange for R2 robotaxis, with $300 million committed initially. This comes just days after the rideshare company and Nvidia (NVDA) announced a Nvidia-powered, self-driving taxi set to arrive in 2027.

Uber and its fleet partners will purchase 10,000 Rivian R2 robotaxis, with an option to purchase 40,000 more in 2030. Initial deployments will start in San Francisco and Miami in 2028, with plans to scale to 25 cities by 2031. While Uber stock is down on Thursday, it is up over 3% in the last few days. Rivian (RIVN), meanwhile, surged as much as 10% in early trading.

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RJ Scaringe, Founder and CEO of Rivian, said:
“We couldn’t be more excited about this partnership with Uber — it will help accelerate our path to level 4 autonomy to create one of the safest and most convenient autonomous platforms in the world. The scale of Rivian’s growing data flywheel, coupled with RAP1, our state-of-the-art in-house inference platform, and our multi-modal perception platform, makes us incredibly excited for the rapid advancement of Rivian autonomy over the next couple of years.”

Dara Khosrowshahi, CEO of Uber, said:
“We’re big believers in Rivian’s approach—designing the vehicle, compute platform, and software stack together, while maintaining end-to-end control of scaled manufacturing and supply in the U.S. That vertical integration, combined with data from their growing consumer vehicle base and experience managing the complexities of commercial fleets, gives us conviction to set these ambitious but achievable targets.”

Uber has signed several deals recently with outside partners to build up its robotaxi efforts. Uber and Lucid (LCID) have a deal to create a robotaxi service in US cities using up to 20,000 Lucid EVs powered by startup Nuro’s self-driving OS. The rideshare leader also partnered with Alphabet’s (GOOGL) Waymo to summon Waymo robotaxis on Uber’s platforms in cities like Atlanta and Austin.