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Uber Technologies (UBER) Raises $1.2 Billion Using Unusual Deal Structure

As a display of creative financial mechanisms, Uber Technologies Inc. (NYSE:UBER) raised around $1.2 billion last week through an exchangeable bond deal. So, what’s so interesting? The agreement has a rarely utilized structure where payouts are linked to the company’s stake in Aurora Innovation Inc. (NASDAQ:AUR). As per this structure, these bonds will turn into Aurora equity if the stock exceeds a set price (conversion threshold) after a specified period, which could generate significant value for the bondholders. Conversely, if the stock declines in value, the bondholders get the bond’s par value at maturity.

A fleet of electric vehicles in a cityscape, representing the companies success in urban transportation.

For Uber, which owns around a 20% stake in Aurora, the deal helps it avoid selling its stake probably at a discount, and at a time when Aurora shares are down 40% from their highs reached in February 2025. According to David Hulme, managing director and portfolio manager at Advent Capital Management, the main attraction for the bond investors has been Uber’s investment-grade credit rating and the volatile nature of Aurora stock, which gives them a chance for substantially higher returns. Moreover, Uber’s CEO, Mr. Dara Khosrowshahi, has assured the investors that the company will hold on to its Aurora stake for the foreseeable future.

Uber Technologies Inc. (NYSE:UBER) is a technology platform that utilizes its vast network, cutting-edge technology, and operational expertise to facilitate transportation and logistics services. The company offers ride-hailing, food delivery, and freight transportation, with key segments including Uber Eats for food delivery, Uber Freight for logistics, and advancements in autonomous vehicles and aerial ridesharing.

Aurora Innovation Inc. (NASDAQ:AUR) is a self-driving technology company focused on developing autonomous vehicle solutions for freight and passenger transportation.

While we acknowledge the potential of UBER as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UBER and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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