Stellantis and Microsoft are teaming up on AI in a new five-year deal
The automaker plans to cut its datacenter footprint by 60% by 2029 as part of the agreement with the software giant
Credit: Microsoft $MSFT
Stellantis $STLA and Microsoft $MSFT announced a five-year strategic collaboration this week to co-develop AI, cybersecurity, and engineering capabilities, as the automaker works to accelerate its digital transformation.
More than 100 AI initiatives are planned under the deal, to be developed by joint teams across areas including customer care, product development, and operations, the companies said. Among the specific focus areas are AI-assisted validation, predictive maintenance, and accelerating the delivery of new digital features to customers.
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Stellantis plans to move its systems to Microsoft’s Azure cloud, which should reduce its datacenter size by 60% by the end of 2029. The company will also use AI-powered cyberdefense to protect its connected vehicles, factory networks, IT systems, and digital products.
"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 statement.
Stellantis is also equipping its workforce with AI productivity tools as part of the deal. All employees have been given access to Copilot Chat, and an initial rollout of 20,000 Microsoft 365 Copilot licenses is being deployed to select roles, the companies said.
No financial terms were disclosed, according to Reuters.
The two companies are not starting from scratch — they had already collaborated on connected vehicle platforms and in-car digital services before formalizing this broader agreement. The deal reflects a broader pattern in the industry, with established automakers seeking outside help on software and AI as Chinese competitors push aggressively into those areas, according to Reuters.