German newspaper Handelsblatt said Volkswagen plans to invest triple-digit million euros in the realization of the deal with Bosch.
The Volkswagen – Bosch software project will use the company Cariad, which is also the focus of the overhaul.
Volkswagen CEO Herbert Diess believes software is the main battleground for the future of the auto industry, from autonomous driving operating systems to software services.
Cariad gets 2.5 billion euros (USD 2.8 billion) in funding from Volkswagen every year.
Volkswagen has also invested 159 billion euros of which 89 billion will be in electric cars and digitization. Meanwhile, around 21 billion euros will be invested in its factory in Lower Saxony. The company seems serious about competing with Tesla in the world electric car race.