Uber and Rivian announced Thursday a partnership worth up to $1.25 billion aimed at accelerating the deployment of autonomous vehicles, with plans to introduce up to 50,000 robotaxis by 2031.

Under the agreement, Uber will invest up to $1.25 billion in Rivian over the next several years, contingent on the companies meeting key autonomous performance milestones. The deal includes an initial $300 million investment following regulatory approval.

Uber intends to purchase 10,000 fully autonomous Rivian R2 robotaxis, either directly or through its fleet partners, with the option to acquire up to 40,000 additional vehicles in 2030. The autonomous fleet will operate exclusively on Uber’s platform.

The companies plan to begin initial deployments in San Francisco and Miami in 2028, with expansion to more than two dozen cities by 2031. If milestones are met, thousands of unsupervised robotaxis could be operating across 25 cities in the United States, Canada, and Europe.

Rivian CEO RJ Scaringe said the partnership will accelerate the company’s push toward Level 4 autonomy, which allows vehicles to operate without human intervention under specific conditions. He pointed to Rivian’s in-house technology platforms and growing data capabilities as key advantages.

Uber CEO Dara Khosrowshahi emphasized Rivian’s vertically integrated approach, noting the company’s control over vehicle design, software, and manufacturing as a major factor behind Uber’s confidence in the partnership.

Following the announcement, Rivian shares rose 3.8%, while Uber stock dipped 1.72% during Thursday’s trading session, reflecting mixed investor reaction to the long-term investment strategy.