KATHMANDU: Stellantis and Microsoft have signed a five-year strategic partnership focused on artificial intelligence, cybersecurity and engineering, according to Reuters.
The agreement comes as global automakers race to match fast-moving technology rivals, especially Chinese brands that are rapidly adding new digital features.
Software and data-based services are now becoming central to the future of the auto industry. Traditional carmakers are increasingly turning to major tech firms for support.
Stellantis Chief Engineering and Technology Officer Ned Curic said the partnership will help accelerate the company’s AI transformation across the business.
Financial details of the agreement were not disclosed.
The two companies already have an existing relationship. They previously worked together on connected vehicle platforms and in-car digital services.
Under the new deal, joint teams will develop more than 100 AI projects. These will cover product development, vehicle validation, predictive maintenance, testing and faster rollout of digital services.
The partnership will also strengthen Stellantis’ global cyber defense center. AI-powered systems will be used to detect threats and protect vehicles, customer data and company operations.
Security systems will cover IT networks, connected vehicles, factories and digital products. Mobile apps and in-car services will also be included.
As part of the collaboration, Stellantis will modernize its IT systems using Microsoft Azure. The company is targeting a 60 percent reduction in its data center footprint by 2029.
