"Qualcomm and Alphabet Join Forces for AI in Cars, Mercedes Inks Chip Deal"

Qualcomm Inc. (NASDAQ:QCOM) announced a collaboration with Alphabet Inc. (NASDAQ:GOOGL) to enable automakers to develop their own artificial intelligence (AI) voice assistants. This partnership aims to integrate the technology into vehicles' AI systems by combining Qualcomm's chips with Google's software.

The collaboration is designed to ensure that Google's Android Automotive OS, a version of the operating system optimized for car usage, runs seamlessly on Qualcomm's chips. Unlike Google’s Android Auto and Apple Inc.’s (NASDAQ:AAPL) CarPlay, which require smartphones to display applications within a vehicle, Android Automotive OS is embedded directly into the vehicle’s computing systems.

Qualcomm and Google are providing automakers with the necessary tools to create customized voice assistants that operate independently of the driver’s mobile device. This initiative marks a departure from the companies’ previous approach of working together but communicating separately with customers. Nakul Duggal, head of Qualcomm’s automotive unit, highlighted the benefits of this new strategy, stating, “We decided we need to think about it differently because this is going to reduce a lot of friction and confusion.”

In addition to the partnership announcement, Qualcomm introduced two new chips: the Snapdragon Cockpit Elite, designed to power vehicle dashboards, and the Snapdragon Ride Elite, aimed at autonomous driving functions. Mercedes-Benz Group (OTC:MBGAF) has committed to using the Snapdragon Elite Cockpit chip in its future vehicles, though specific details about timing and models have not been disclosed.