Uber Technologies Inc (NYSE:UBER) shares are surging on Wednesday. Investors are cheering a massive strategic shift toward autonomous vehicle (AV) technology.

The rally comes despite reports of internal budget struggles regarding AI development.

$10 Billion Robotaxi Commitment

The Financial Times reported Wednesday that Uber committed nearly $10 billion to its Robotaxi strategy. This includes $2.5 billion for equity stakes in AV firms.

These investments depend on companies hitting specific deployment milestones. Uber also plans to spend $7.5 billion to expand its autonomous fleet over the coming years.

Strategic Global Partnerships

Uber is aggressively expanding its Autonomous Vehicles footprint through high-profile deals. The company recently partnered with Lucid Group Inc (NASDAQ:LCID) to purchase 35,000 vehicles.

Additionally, Uber launched Europe's first commercial Robotaxi service with Pony AI Inc (NASDAQ:PONY). Partnerships with WeRide Inc (NASDAQ:WRD) and Baidu Inc (NASDAQ:BIDU) are also scaling operations in the UAE and London.

AI Budget Hurdles

Despite the stock's gains, internal reports highlight rising costs. CTO Praveen Neppalli Naga noted the company is "back to the drawing board" after exhausting its AI budget.

Uber spent $3.4 billion on Research and Development. Naga stated that AI usage "blown past internal expectations," particularly Anthropic's Claude Code.

Engineering The Future

Uber aims to transition toward "agent engineers." These AI systems will eventually handle coding, testing, and deployment.

Currently, AI agents write approximately 11% of Uber's live backend code. This automation powers critical functions like pricing and ride-matching.

UBER Stock Price Activity: Uber Technologies shares were up 5.31% at $76.78 at the time of publication on Wednesday, according to Benzinga Pro data.

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