Uber announced Monday that it would sell its self-driving unit Advanced Technologies Group to Aurora Innovation, but CEO Dara Khosrowshahi said he doesn’t think the company is giving up its self-driving game.
“It is crucial that we have access to the best and leading autonomous technology,” said Khosrowshahi in CNBC’s “Squawk Box”. “We want to make sure this technology is developed for the Uber network and is available on a large scale for the Uber network.”
Uber’s co-founder and former CEO Travis Kalanick had viewed self-driving as a significant investment and said in 2016 that he believed the world would shift to autonomous vehicles. The company poured funds into the unit, but it came with high costs and security challenges.
As part of the deal, Khosrowshahi will join Aurora’s board of directors, and the ridesharing giant will invest $ 400 million in the company.
“This deal will essentially bring together two leading teams in the autonomous region,” said Khosrowshahi. “It accomplishes everything we thought was crucial and it creates a leading pure game in space. We are very exciting to accomplish this.”
The deal, which is expected to close in the first quarter of 2021, values ATG at around $ 4 billion. According to someone familiar with the terms of the contract, Aurora will be valued at $ 10 billion on the transaction.
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