Source: Wall Street News

On January 3, Bloomberg reported that the world's leading in-vehicle AI Voice Technology company $Cerence (CRNC.US)$ has announced an expansion of its collaboration with NVIDIA aimed at enhancing the performance of the language models in its in-vehicle systems.

This collaboration will combine NVIDIA's AI Enterprise Software and DRIVE AGX Orin Hardware to further optimize Cerence's CaLLM™️ and CaLLM Edge language models, bringing a more efficient and reliable voice assistant experience to Auto Manufacturers and users.

After the announcement, Cerence's stock price in Regular Trading Hours surged over 85%, currently up over 74%.

The core of this collaboration is to utilize NVIDIA's technology to enhance Cerence's existing language models, thereby providing faster and more stable in-vehicle voice assistant services.

Cerence will integrate NVIDIA's TensorRT-LLM and NeMo end-to-end frameworks to optimize its generative AI applications, streamlining the development and deployment process of language models. This technological integration will not only enhance the response speed of in-vehicle systems and reduce the latency of voice assistants but also improve privacy protection and security, preventing malicious interactions and ensuring driving safety.

Cerence: Focused on generative AI, aiming to return to profitability in the 2025 fiscal year.

Through this collaboration, Cerence combines its CaLLM language model with NVIDIA's AI Enterprise platform, supporting the running of AI models in a cloud-native architecture while achieving some localized processing of models on in-vehicle Hardware via DRIVE AGX Orin. The synergy between cloud and Edge Computing not only enhances the response speed of in-vehicle voice assistants but also optimizes the overall stability and security of the system.

It is worth noting that Cerence's revenue over the past 12 months was $0.3315 billion, with a gross margin of 73.7%. In the fourth quarter, Cerence achieved a revenue of $54.8 million, exceeding expectations, with an adjusted EBITDA of negative $1.9 million, performing better than anticipated. The company expects its free cash flow for the 2025 fiscal year to be $25 million.

Previously, Cerence announced a Global Strategy to shift towards generative AI, with the goal of returning to profitability by the 2025 fiscal year.

Nils Schanz, Senior Vice President of CerenceAI Products and Technology, stated:

"By optimizing the performance of the CaLLM series language models, we have saved costs and improved performance for our Auto Manufacturers clients, who are rapidly deploying generative AI solutions for their drivers. As we advance the next-generation platform based on CaLLM, these advanced features will provide drivers with faster and more reliable interactions, enhancing their safety, enjoyment, and productivity on the road."

NVIDIA's Vice President of Autos, Rishi Dhall, stated:

Large language models offer a vast new user experience, but the scale and complexity of deployment may make it difficult for developers to deliver AI-driven solutions to end users. Through this expanded collaboration, Cerence AI is deploying advanced NVIDIA AI and accelerated computing technologies to optimize the development and deployment of its large language models.

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