Cerence Inc., an AI voice technology company serving the automotive industry, has announced a partnership with Nvidia. The partnership involves improving the Large Language Models (LLMs) that the company uses in in-vehicle voice assistance technology. The stock rose as much as 70% in the first hour of trading.
Cerence Inc. was formed in 2019 after a spinoff from Nuance Communications, a company itself purchased two years later by Microsoft for $19.7 billion. It is developing AI-based virtual assistance for automobiles with the aim of helping drivers better interact with their vehicles. The company serves more than 60 automakers around the world. Its technology can recognize more than 70 different languages and dialects, in addition to integrating facial recognition and compatibility with voice assistants from Google and Apple.
Cerence’s voice assistance technology integrates with vehicle operating systems from various automakers, including BMW, Fiat and Mercedes. The company’s newest product, CaLLM Edge, helps improve the performance of various vehicle systems with its low latency. It also runs on local processors, reducing reliance on cloud connectivity. For the driver, this translates into better voice recognition, especially in noisy environments.
The current collaboration with Nvidia also concerns this CaLLM technology. CaLLM will now be able to use Nvidia’s software to improve computing power, helping the company bring agentic AI to vehicle users. According to Nils Schanz, vice president of the company, there is a growing demand from drivers for generative solutions based on AI, and this partnership will allow the company to meet this demand.
Just yesterday, the company also announced a multi-year agreement with Jaguar Land Rover (JLR), demonstrating how the company continues to serve a wide range of customers. Partnering with Nvidia will likely help the company strengthen these relationships while improving its technology.
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