Stellantis and Microsoft announced a five-year strategic collaboration to jointly develop artificial intelligence (AI), cybersecurity, and engineering capabilities. The partnership aims to keep the automaker competitive against technology-driven rivals. Software and data-driven services have become crucial in the long-term strategies of automotive companies, particularly as Chinese automakers enhance features to attract customers globally. Legacy automakers, facing challenges in mastering software and technology, are increasingly seeking partnerships with tech firms to accelerate progress.
Stellantis’ Chief Engineering and Technology Officer, Ned Curic, emphasized the acceleration of AI initiatives across the enterprise through the collaboration with Microsoft. While no financial details were disclosed, the deal focuses on co-developing over 100 AI initiatives at Stellantis. The partnership builds on the existing relationship between the two companies, with previous collaborations on connected vehicle platforms and in-car digital services.
The agreement includes joint efforts to develop AI initiatives for product development, predictive maintenance, testing, and the rapid deployment of digital features and services. Additionally, the collaboration will enhance Stellantis’ global cyber defense center using AI-driven analytics to bolster cybersecurity and protect vehicles, customer data, and operations worldwide. The cyber defense center will cover IT systems, connected vehicles, manufacturing sites, and digital products to embed security functions in mobile apps and in-vehicle services.
As part of the collaboration, Stellantis aims to modernize its IT infrastructure on Microsoft’s Azure cloud platform, targeting a 60% reduction in its data center footprint by 2029. This move aligns with Stellantis’ focus on improving core vehicle sales and quality while delivering personalized experiences for drivers. Despite previous software partnerships being discontinued, the Stellantis-Microsoft partnership signifies a strategic step towards technological advancement.