Stellantis and Microsoft have announced a five-year strategic partnership to collaborate on artificial intelligence (AI), cybersecurity, and engineering capabilities. This move comes as Stellantis aims to stay competitive with technology-focused rivals in the automotive industry. The importance of software and data-driven services has grown significantly in the long-term strategies of automotive companies, particularly as Chinese automakers ramp up their efforts to attract customers both domestically and internationally.
Traditional automakers, who have faced challenges in developing software and tech independently, are increasingly seeking partnerships with technology firms to expedite their progress. Stellantis’ Chief Engineering and Technology Officer, Ned Curic, emphasized the acceleration of their AI initiatives enterprise-wide through the collaboration with Microsoft. While the financial specifics of the partnership were not disclosed, the focus is on co-developing over 100 AI projects at Stellantis.
Stellantis has been relying on tech partnerships to advance its software goals and enhance personalized experiences for drivers. Reuters previously reported on the winding down of Stellantis’ in-car software deal with Amazon. The Stellantis-Microsoft partnership builds upon their existing relationship, with previous collaborations on connected vehicle platforms and in-car digital services.
The agreement entails joint efforts to develop more than 100 AI projects, spanning various areas such as product development, predictive maintenance, testing, and the rapid deployment of digital features and services. Additionally, the partnership will involve bolstering Stellantis’ global cyber defense center with AI-driven analytics to safeguard against cyber threats and protect vehicles, customer data, and operations globally.
The cyber defense center will encompass IT systems, connected vehicles, manufacturing sites, and digital products, integrating security measures across mobile apps and in-vehicle services. As part of the collaboration, Stellantis plans to enhance the modernization of its IT infrastructure using Microsoft’s Azure cloud platform, with a target of reducing its data center footprint by 60% by 2029.