Uber acquires Belgian Segments.ai to expand AI data labeling services

Uber has acquired Belgian data labeling startup Segments.ai for an undisclosed amount, expanding its push into AI training services beyond its traditional ride-sharing and delivery operations. The move transforms Uber’s internal data labeling capabilities—originally developed for its own autonomous driving efforts—into a revenue-generating service for other companies developing self-driving technologies worldwide.

What you should know: Segments.ai specializes in annotating objects in videos and LiDAR sensor data, creating the training datasets essential for autonomous vehicle development.
• The Y Combinator-backed startup helps engineers label complex visual data that AI systems need to recognize and respond to real-world driving scenarios.
• Uber has been quietly selling its data labeling expertise to external clients, leveraging capabilities it built for its own self-driving car research.

In plain English: Data labeling is like teaching a computer to recognize objects by showing it thousands of labeled examples—imagine showing a child pictures of cars, pedestrians, and stop signs until they can identify them instantly. For self-driving cars, this process involves marking every relevant object in video footage and sensor data so the AI can learn to navigate safely.

The big picture: This acquisition signals Uber’s strategic pivot toward becoming an AI services provider, not just a transportation company.
• Data labeling represents a potentially lucrative market, as the work has traditionally been outsourced to gig workers but requires increasingly sophisticated technical expertise.
• The deal positions Uber to capitalize on the growing demand for high-quality training data as more companies race to develop autonomous driving systems.

Broader industry context: The acquisition comes amid accelerating consolidation in the AI sector, with major players making strategic moves to secure competitive advantages.
• BlackRock, the world’s largest asset manager, is reportedly nearing a $40 billion deal to acquire data center builder Aligned Data Centers, reflecting the massive infrastructure investments needed to power AI development.
• These deals highlight how companies across industries are positioning themselves to benefit from the AI boom, whether through direct services or supporting infrastructure.

Why this matters: Uber’s transformation from a ride-sharing disruptor to an AI services provider illustrates how companies are finding new ways to monetize their technical capabilities in the AI era.