Stellantis and Microsoft announced a five-year strategic partnership on Thursday to collaborate on artificial intelligence (AI), cybersecurity, and engineering capabilities. This move comes as Stellantis aims to keep up with technology-focused competitors in the automotive industry. Software and data-driven services are increasingly crucial for automotive companies, particularly as Chinese automakers enhance their offerings to attract customers both locally and internationally.
Traditional automakers, who have faced challenges in developing their software and technology capabilities, are now seeking partnerships with tech firms to tap into their expertise and accelerate progress. Stellantis’ Chief Engineering and Technology Officer, Ned Curic, highlighted the importance of the collaboration with Microsoft in advancing AI initiatives across the company.
Although specific financial details were not disclosed, the partnership between Stellantis and Microsoft will focus on co-developing over 100 AI projects. This includes initiatives related to product development, predictive maintenance, testing, and the swift deployment of digital features and services. Additionally, the collaboration will strengthen Stellantis’ global cyber defense center by utilizing AI-driven analytics to enhance cybersecurity measures and safeguard vehicles, customer data, and operations globally.
The agreement also entails the modernization of Stellantis’ IT infrastructure on Microsoft’s Azure cloud platform, with a target of reducing the data center footprint by 60% by 2029. The partnership builds upon the existing relationship between Stellantis and Microsoft, as both companies have previously collaborated on connected vehicle platforms and in-car digital services.
In a related development, Stellantis’ previous in-car software deal with Amazon was reported to be winding down last year. The current alliance with Microsoft signifies Stellantis’ commitment to leveraging technology partnerships to advance its software ambitions and deliver enhanced experiences for drivers, while focusing on strengthening core vehicle sales and quality.