Although the current wave of enthusiasm surrounding artificial intelligence has caused AI-related stocks to surge and left many investors wondering whether valuations have become excessively inflated, Uber’s chief executive, Dara Khosrowshahi, argues that the company’s integration of this transformative technology has driven a profound and beneficial shift across its operations. In a discussion on the podcast “On with Kara Swisher,” released on Thursday, Khosrowshahi acknowledged that one could certainly debate whether the market is experiencing something akin to a speculative bubble, given the astronomical spending on computational infrastructure, data centers, and other foundational technologies that fuel AI development. Regardless of the debate over market exuberance, he maintained that for Uber, the value generated by artificial intelligence has been both tangible and significant, extending beyond futuristic or experimental concepts into the realm of very pragmatic, results-driven applications.

He illustrated this practicality with a simple, relatable example: AI systems now determine what appears next to a customer on the Uber Eats app. For instance, after a user adds a carton of oat milk to their cart, the algorithm intelligently suggests complementary items based on behavioral data and preference modeling—demonstrating how AI subtly yet powerfully enhances user experience and engagement. According to Khosrowshahi, the newest generations of AI models have proven to be dramatically more capable, efficient, and accurate than their predecessors, generating hundreds of millions of dollars in additional value for the company through optimization, automation, and predictive insight. In his view, Uber’s investment in AI capabilities has not merely paid off, but delivered returns that far exceed initial expectations. As he put it, Uber is not directly manufacturing the so-called “picks and shovels”—the fundamental chips and data-center infrastructure—but instead skillfully leveraging the ecosystem built by others to advance its own strategic position and productivity.

While AI stocks have climbed to unprecedented highs during the year, some prominent investors, including Michael Burry of “The Big Short” fame, have issued pointed warnings. They contend that major technology firms may be dangerously overspending on microchips and expansive facilities in their rush to secure computing power, potentially setting themselves up for disappointment if these expenditures fail to yield the extraordinary growth they are projecting. Khosrowshahi, however, sees Uber’s approach as an example of disciplined, applied intelligence rather than reckless speculation.

He characterized Uber as an “applied AI” enterprise—a company that has embedded artificial intelligence across virtually every major operational layer. Within Uber’s vast network, AI contributes to essential business functions such as dynamic pricing, payments management, efficient driver-passenger matching, optimized routing, user identification, and even the resolution of customer support issues. He revealed that approximately 80% to 90% of Uber’s software developers now rely on AI tools as an integral part of their daily workflow. Tasks that once required teams of engineers to spend extensive hours diagnosing and repairing issues across complex systems are now largely assisted by AI agents that continuously monitor Uber’s infrastructure in real time, identifying anomalies and suggesting solutions well before human intervention becomes necessary. This paradigm shift has not replaced human engineers but has instead amplified their efficiency and creative capacity. As Khosrowshahi explained, today “the human can look over the shoulder of the AI agent,” reviewing, validating, and refining its recommendations while focusing on higher-level problem solving.

Interestingly, Khosrowshahi diverges from the perspective of some other technology executives who interpret the productivity boost delivered by AI as a justification for downsizing human staff. While many might assume that a 20% or 30% increase in developer efficiency could translate into a corresponding reduction in headcount, Khosrowshahi emphatically disagrees. In his estimation, artificial intelligence doesn’t make engineers redundant—it enhances them, effectively upgrading their capabilities and making their expertise even more valuable to the company. He described this phenomenon by saying that AI turns his engineers into “superhumans.” Consequently, far from cutting staff, Uber is actively expanding its team of developers, recognizing that every engineer empowered by AI tools represents amplified potential for innovation, reliability, and competitive advantage.

Beyond AI-driven internal improvements, Khosrowshahi also discussed Uber’s partnerships with companies like Waymo and other autonomous vehicle developers. These collaborations, he noted, are already demonstrating strong appeal among customers who appreciate the privacy, comfort, and novelty of self-driving experiences. While he personally enjoys conversing with Uber’s human drivers and learning their stories, he acknowledged that there is also a genuine pleasure in solitude—being able to sit alone in a car without interruption—which robotaxis uniquely provide.

Looking ahead, Khosrowshahi forecasted that once driverless vehicles evolve into proven revenue-generating assets, the financial community, including major Wall Street investors, will enthusiastically adopt them as an attractive investment class. Funds and firms will seek to deploy fleets of autonomous vehicles on Uber’s platform in order to reach its global customer base and optimize their returns. Drawing an analogy, he compared this forthcoming development to how private equity and private debt institutions are currently financing immense data center projects and purchasing large volumes of chips from companies such as Nvidia. In much the same way, he predicted, this financial ecosystem will soon extend to the acquisition and deployment of fleets of autonomous cars. In this model, Uber would assume a role similar to that of Marriott in the hospitality sector—focusing primarily on platform management, brand consistency, and operational excellence while leaving asset ownership to its investment partners. Through this strategic balance of technological adoption and collaborative capital deployment, Khosrowshahi envisions Uber continuing to evolve as both a technological innovator and an orchestrator of the next generation of intelligent mobility.

Sourse: https://www.businessinsider.com/uber-dara-ai-bubble-tech-transportation-nvidia-burry-waymo-cars-2025-12