Auto manufacturer Stellantis announced Thursday it has entered into a five-year collaboration with tech giant Microsoft to advance artificial intelligence, cybersecurity, and engineering technologies as the company works to compete with technology-focused competitors.
The automotive industry has increasingly prioritized software and data services in their long-term business plans, particularly as Chinese car manufacturers rapidly develop new features to attract customers both domestically and internationally.
Traditional automakers, who have frequently faced challenges in developing software and technology capabilities independently, are turning more often to partnerships with technology companies to access specialized knowledge and accelerate development timelines.
“Through our collaboration with Microsoft, we are accelerating our AI momentum across the enterprise,” said Stellantis Chief Engineering and Technology Officer Ned Curic in a joint statement.
The companies did not disclose financial terms of the agreement.
Stellantis has previously utilized technology partnerships to advance its software goals and create more customized driver experiences, though the company has discontinued some initiatives to concentrate on improving fundamental vehicle sales and quality.
Last year, Reuters reported that Stellantis was ending its in-vehicle software partnership with Amazon.
This new Microsoft collaboration expands upon an existing business relationship between the companies, who have previously collaborated on connected vehicle platforms and digital automotive services.
According to the announcement, combined teams will develop more than 100 artificial intelligence projects spanning product development and validation, predictive maintenance and testing, plus accelerated deployment of digital features and services.
The collaboration will also help the manufacturer of Jeep and Peugeot vehicles enhance its worldwide cyber defense operations using AI-powered analytics to prevent cyber attacks and safeguard vehicles, customer information, and global operations.
The cyber protection center will encompass IT infrastructure, connected automobiles, production facilities, and digital products, integrating security measures throughout mobile applications and vehicle-based services.
Through this partnership, Stellantis plans to modernize its IT systems using Microsoft’s Azure cloud technology, aiming to decrease its data center requirements by 60% before 2029.
