Cerence Inks $125M Contract with European Car Manufacturer

Cerence Inks $125M Contract with European Car Manufacturer

Cerence has signed a $125 million contract with an undisclosed European car manufacturer. The deal is the largest in the company’s relatively short corporate history, and reaffirms its position as one of the leading developers of voice-based virtual assistants for the automotive industry. 

“This is a tremendous milestone for Cerence and further evidence of strong momentum in our business,” said Cerence CEO Sanjay Dhawan. “We are proud and grateful for the continued trust that our automotive customers have placed in the Cerence team and our products as we create a safer, more enjoyable journey for everyone.”

According to the terms of the global contract, Cerence will provide the manufacturer with virtual assistant and AI technologies for its vehicles. The company says that the deal is much larger than its previous contracts, though it’s unclear how it compares to any deals that were forged while Cerence was still a part of Nuance Communications. Cerence was officially spun off as an independent company in October.

The company has made significant strides in the months since. Cerence has renewed its partnerships with Mercedes-Benz and HERE Technologies, and is currently developing a new in-car assistant in collaboration with LG.

Cerence has also released a new Cognitive Arbiter and an AI Reference Kit that has been localized for the Chinese market. The lucrative new alliance should only solidify the company’s market position as it moves forward in 2020.