Aurora Acquires Uber's Self-Driving Unit in $10 Billion Landmark Deal
Autonomous vehicle startup Aurora takes over Uber ATG in an all-stock transaction that values the combined company at $10 billion. Uber invests $400 million to secure a 26% stake and a board seat in the newly expanded company.
Autonomous vehicle startup Aurora acquires Uber's self-driving unit, Advanced Technologies Group (ATG), in a complex all-stock deal that values the combined company at $10 billion. Instead of a traditional cash buyout, Uber hands over its majority equity in ATG and invests $400 million directly into Aurora to secure a 26% stake. As a result of this transaction, Uber CEO Dara Khosrowshahi earns a seat on Aurora's board of directors.
This strategic merger brings together a powerhouse of autonomous driving talent and resources under one roof. Aurora, founded in 2017 by industry veterans from Google's Waymo, Tesla, and Carnegie Mellon, gains access to ATG's operational facilities and experienced workforce. Following the deal's closure, Uber, existing ATG investors, and transitioning ATG employees collectively hold a 40% interest in the newly expanded Aurora on a fully diluted basis.
The acquisition significantly accelerates Aurora's mission to build a complete self-driving software stack for both commercial trucks and robotaxis. By absorbing ATG, Aurora instantly acquires valuable industry relationships and the infrastructure needed to scale its technology on public roads. With continued financial backing from major players like Amazon, Sequoia Capital, and now Uber, Aurora positions itself as a leading competitor in the race to deploy fully autonomous vehicles.