Pony AI Inc ($PONY) shares surged 5.21% in pre-market trading on Friday, following reports of a potential acquisition of its US arm by Uber Technologies ($UBER) and its former CEO, Travis Kalanick. The news has sparked investor interest in the Chinese autonomous driving company, highlighting the growing focus on self-driving technology in the ride-hailing industry.

According to sources cited by The New York Times, Uber is in preliminary talks to help fund Kalanick's planned acquisition of Pony AI's US operations. Kalanick, who was ousted as Uber's CEO in 2017, is also reportedly working with other investors to finance the transaction. This move marks a potential return to the mobility sector for Kalanick, who has been focusing on his CloudKitchens venture since leaving Uber.

The potential deal comes amid increasing US-China tensions and regulatory challenges for Chinese tech companies operating in the United States. Pony AI's US arm, which focuses primarily on R&D and testing, generated less than 1% of the company's global revenue last year. This acquisition could provide Pony AI with an opportunity to divest its US operations while allowing Kalanick and Uber to gain a foothold in the promising autonomous driving technology sector. The move also reflects the growing interest in robotaxis, with companies like Tesla recently launching their own driverless cab fleets.