Stellantis, Microsoft Sign Five-Year Partnership for AI Push

Stellantis and Microsoft Announce Five-Year AI Partnership for Automotive Innovation

Overview of the Stellantis-Microsoft AI Partnership

Strategic Collaboration to Advance Automotive Technology

MILAN, April 16 (Reuters) - Stellantis and Microsoft said on Thursday they agreed to a five‑year strategic partnership to co-develop artificial intelligence (AI), cybersecurity and engineering capabilities, as the automaker races to keep pace with technology-focused rivals. 

Software and data-driven services have become central in the automotive companies' long-term strategies, especially as Chinese automakers accelerate their development of features to entice customers domestically and abroad.

Legacy Automakers Seek Tech Partnerships

Legacy automakers, which have often struggled to master software and tech efforts on their own, are increasingly looking to partner with tech companies to leverage their expertise and speed. 

"Through our collaboration with Microsoft, we are accelerating our AI momentum across the enterprise," Stellantis Chief Engineering and Technology Officer Ned Curic said in a joint statement.

No financial details of the deal were provided.

Stellantis’ Approach to Software and Digital Services

Evolution of Tech Partnerships

Stellantis has relied on tech partnerships to support its software ambitions and provide more personalized experiences for drivers, although it has ditched some of those efforts as it now focuses on improving its core vehicle sales and quality.

Reuters reported last year that Stellantis' in-car software deal with Amazon was winding down.

Building on an Existing Relationship

The Stellantis-Microsoft tie-up builds on an existing relationship between the two groups, which have previously worked together on connected vehicle platforms and in-car digital services. 

Key Initiatives and Focus Areas

Co-Development of AI Solutions

Areas of Collaboration

Under the agreement, joint teams will co-develop more than 100 AI initiatives covering areas including product development and validation, predictive maintenance and testing, and the faster rollout of digital features and services, the two groups said.

Cybersecurity Enhancements

Global Cyber Defence Centre

The partnership will also see the Jeep and Peugeot maker strengthen its global cyber defence centre using AI-driven analytics to help prevent cyber threats and protect vehicles, customer data and operations worldwide.

The cyber defence centre will span IT systems, connected vehicles, manufacturing sites and digital products, embedding security functions across mobile apps and in-vehicle services.

IT Infrastructure Modernization

As part of the collaboration, Stellantis will accelerate the modernisation of its IT infrastructure on Microsoft's Azure cloud platform, targeting a 60% reduction in its data centre footprint by 2029.

(Reporting by Giulio Piovaccari in Milan; Additional reporting by Nora Eckert in Detroit and Janane Venkatraman)