Uber's Partnership with Tesla and BYD: Autonomous Driving and AI Services

Uber's collaboration with Tesla for EVs and BYD's autonomous capabilities reflects the market's state of affairs.

### Uber's EV Strategy and Microsoft's AI Challenges
* 🚗  Uber's partnership with Tesla and BYD for EVs is seen as a strategic move to **establish a strong position in the gig economy market**.
* 🔋  Tesla's focus on Robotaxi through its own app contrasts with Uber's approach of **collaborating with various OEMs for autonomous capabilities**.
* 🤖  Despite these partnerships, Uber and its partners are still considered **behind Tesla and Waymo** in autonomous driving software development.
* 💻  Microsoft's Azure Cloud services are experiencing **slower growth than expected**, with a **15-year time horizon** mentioned to monetize CapEx investments.
* 💰  The shift to newer AI chips is driving **pricing compression** and impacting cloud workloads using **older chips**.
* 📈  Bloomberg Intelligence expects Microsoft to show **top-line growth exceeding 20%** in the current quarter, with a focus on **increasing ad pricing and revenue**.

I find this fascinating.
The idea, in the first instance, is availability to gig economy drivers on
the platform. What did you make of it?
Yeah, I mean, look, Uber has so far done a great job of establishing a network
outside the US, and obviously they don't have access to the China market.
So these are the pockets where it has the number one position.
And you know, moving to the EV side makes a ton of sense.
So clearly Tesla is partnering with them.
I mean, we know Tesla wants to go to Robotaxi through their own app.
They're not looking to use one of these ridesharing guys.
And I think it makes sense for Uber to collaborate with all these OEMs, whether
it's BYD or KIA or anyone. Well, just real quick, collaborate.
No financial terms between the two companies disclosed, I found the
autonomous paragraph very important. BYD's future autonomous capabilities on
the Uber platform.

You know about my reporting on Robotaxi
with Tesla. That seems like a response, right?
This is acknowledging the market state of affairs.
It is. But I mean, look, all these companies
are behind Tesla and Waymo when it comes to developing the software capabilities
for autonomous driving. So I would still say Uber doesn't have
the platform to have, you know, Robotaxis because all these companies
just aren't there when it comes to the software
development. Let's talk about Microsoft.
I think we know the Microsoft story rate slower than hoped for growth on Azure
Cloud services in AI and CapEx. There was something Amy had said on the
call that I just saw straight away that I don't see being discussed, which is a
15-year time horizon to monetize the CapEx.
That's a bit of a clue of how long this is going to take to be real, right?
Yeah. And look, all these chips are changing.
So within video coming up with their

latest architecture. They talked about shipping. BLACKWELL: Imagine if you're a consumer of these AI services, you want access to the latest chips. And so that automatically drives a compression to, you know, your cloud workloads that are being that are using the earlier version of the chip. So, I think that's what we saw in the print. Like, you know, there was some sort of substitution going on in terms of CPU to more GPUs and also the pricing compression from the latest version of the chips. I don't know who barged out of Bloomberg's world headquarters first last night, me or you, but we got another long day today and I think matter probably the focus. What's the Bloomberg intelligence expectation for this quarter? I mean, you want to see top-line growth in excess of 20%. And remember, the comps get tougher in the second half. So, this is the last quarter because they had such a great year last year in the second half.

Yes.
So clearly, you want to see our pricing continue to trend higher.
Pinterest was not very convincing last night in terms of that ad pricing.
And given Metta has the most GPU allocation, they should be the
biggest deployer. So that's the thing.
Just real quick, we know they're buying that volume of each one hundreds.
We know the CapEx commitment. So what is it they're going to have to
do to tell the market where this is a success for us in AI and they don't have
a cloud revenue that's $5 billion run rate coming from API.
So it has to reflect in that ad pricing and ad revenue, and you want to see that
momentum, the 20% plus growth rate.

Uber Partners With BYD to Put Drivers in 100,000 EVs

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Bloomberg Technology

Uber's Shift to the EV Market and Collaboration with Tesla

Uber is focusing on expanding its network outside the US and moving towards the EV market, with a partnership with Tesla for autonomous driving.

However, Uber's autonomous capabilities still lag behind Tesla and other leading companies.

The collaboration between Uber and Tesla is seen as a response to BYD's future autonomous capabilities on the Uber platform, indicating a competitive market.

Microsoft's slower growth in Azure Cloud services and AI is also linked to the changing landscape of technology, indicating a longer time horizon for monetization.

The Impact of the Latest Chips on AI Services

The demand for access to the latest chips is driving a shift towards GPU usage in cloud workloads.

This shift is causing pricing compression and a substitution of CPUs for GPUs.

Bloomberg Intelligence expects the current quarter to show top-line growth of over 20%, despite facing tough comparisons from the previous year.

The Importance of Increasing Ad Pricing for AI Success

Pinterest's ad pricing was unconvincing for the desired growth rate.

Metta's high GPU allocation positions them as the primary deployer, with a focus on achieving a $5 billion run rate in cloud revenue from API.

The success of AI depends on reflecting growth in ad pricing and revenue, aiming for a 20% increase.