Stellantis and Microsoft have recently announced a five-year strategic partnership to collaborate on artificial intelligence (AI), cybersecurity, and engineering capabilities. This move comes as Stellantis aims to keep up with technology-driven competitors. The automotive industry is increasingly focusing on software and data-driven services as part of their long-term strategies, particularly in response to the rapid advancements made by Chinese automakers in both domestic and international markets.
Traditional automakers have faced challenges in developing their software and tech capabilities independently, leading them to seek partnerships with technology companies to enhance their expertise and speed in innovation. Stellantis’ Chief Engineering and Technology Officer, Ned Curic, highlighted the importance of the collaboration with Microsoft in accelerating their AI endeavors across the enterprise.
The agreement between Stellantis and Microsoft will involve the co-development of over 100 AI initiatives, encompassing various areas such as product development, predictive maintenance, testing, and the rapid deployment of digital features and services. Additionally, the partnership will involve enhancing Stellantis’ global cyber defense center with AI-driven analytics to bolster cybersecurity measures and protect vehicles, customer data, and operations worldwide.
This collaboration builds upon the existing relationship between Stellantis and Microsoft, which have previously collaborated on connected vehicle platforms and in-car digital services. As part of the partnership, Stellantis will work on modernizing its IT infrastructure using Microsoft’s Azure cloud platform, with a target of reducing its data center footprint by 60% by 2029. Financial details of the partnership were not disclosed.