Benzinga·2026-01-07 07:05Core Viewpoint - The announcement of Nvidia's Alpamayo AI platform is seen as a significant development that mitigates risks for Uber Technologies Inc., leading to a nearly 6% surge in its shares [1][2]. Group 1: Nvidia's Alpamayo AI Platform - Nvidia introduced the Alpamayo family of open-source Vision Language Action (VLA) models, which is compared to a "ChatGPT moment" for physical AI, promising human-like reasoning in vehicles [2]. - The platform aims to democratize autonomy by allowing traditional automakers to implement self-driving capabilities without needing proprietary ride-hailing networks [3]. Group 2: Impact on Uber's Business Model - The fear of "walled gardens" from competitors like Tesla and Waymo has been a concern for Uber, but the Alpamayo platform neutralizes this threat by providing a scalable solution for all automakers [4][5]. - Uber's asset-light model is extended as Nvidia's technology enables the aggregation of self-driving cars from various brands, enhancing Uber's position in the market [5]. Group 3: Cost Reduction and Market Dynamics - Black estimates that the removal of drivers could potentially reduce Uber ride costs by 50% compared to traditional chauffeured trips [6]. - The unveiling of the platform supports the argument that the market for unsupervised autonomy will not be dominated by a single player like Tesla, as it allows for customization of autonomy levels by OEMs [7]. Group 4: Market Performance - Over the last six months, Uber's shares have declined by 11.52%, but they have increased by 29.31% over the past year, with a recent share price of $85.54 [9].