Volkswagen has reportedly selected British artificial intelligence startup Wayve as a technology partner for future autonomous driving systems, following an internal evaluation involving several technology providers.
According to a report by Der Spiegel citing three people familiar with the process, Wayve emerged ahead of Nvidia and other candidates after Volkswagen tested competing systems in a major city in southern Germany. The British startup reportedly performed strongly on both technical and financial considerations.
Wayve Reportedly Wins Internal Evaluation
The reported evaluation comes as Volkswagen seeks to strengthen its autonomous driving technology and improve its position in an increasingly competitive market for advanced driver assistance systems.
Wayve is understood to have demonstrated its technology on an Audi A6 e-tron equipped with its software. According to the report, the vehicle was able to interpret a situation in which an approaching vehicle appeared to yield with its headlights before independently manoeuvring into a parking space.
Wayve uses an end-to-end artificial intelligence approach in which driving decisions are generated from large volumes of sensor data. The approach differs from systems that rely more heavily on individually programmed rules and predefined driving scenarios.
Volkswagen Seeks New Autonomous Driving Partner
The potential Wayve partnership follows the end of the Automated Driving Alliance between Cariad and Bosch.
The two companies had worked on an AI-based Level 2 driver assistance system, which Volkswagen intends to continue using, including in the planned ID.EVERY1. For the development of systems aimed at higher levels of automation, however, Volkswagen has been seeking a new technology partner.
Wayve had reportedly been considered as a candidate during the summer.
Under the potential arrangement, Wayve would primarily provide AI software, while Cariad would integrate the technology into Volkswagen’s broader vehicle architecture. This could include existing sensor systems, computing hardware and other software components.
Nvidia Remains Linked to Wayve
Nvidia was reportedly among the companies competing for the Volkswagen technology partnership.
The reported division of responsibilities would have been different under a potential Nvidia agreement, with the US chipmaker said to have offered Volkswagen a more complete autonomous driving system.
Such an arrangement could have affected the role of Cariad’s autonomous driving organization, which currently employs around 1,200 people, according to the report.
Nvidia is nevertheless connected to Wayve. The semiconductor company has invested in the British startup and supplies computing hardware for Wayve’s autonomous driving projects. It therefore remains unclear which computing hardware Volkswagen could ultimately use if the Wayve partnership proceeds.
Wayve Could Also Affect Volkswagen Robotaxi Plans
A partnership with Wayve could extend beyond Volkswagen’s passenger car driver assistance systems.
The Group has been seeking an external investor for its mobility subsidiary MOIA, although a suitable investor has reportedly not yet been found. Volkswagen has also considered whether a technology partner such as Wayve or Nvidia could become involved in MOIA alongside work with Cariad.
Such an approach could potentially create greater technological alignment between Volkswagen’s passenger vehicle driver assistance systems and its Level 4 robotaxi activities.
Cariad Continues Restructuring
The reported selection of Wayve comes as Cariad continues to restructure its operations and reduce costs.
Cariad is expected to improve its operating result by €400 million and reduce investments by around €6.1 billion over the next five years. CEO Peter Bosch has also announced plans to eliminate around 1,000 positions from a workforce of more than 4,000 employees.
Volkswagen’s software responsibilities are also being reorganized. The Group is developing the next generation of software-defined electric vehicles jointly with Rivian, while Cariad is expected to focus more heavily on selected areas such as infotainment and autonomous driving.
The future allocation of responsibilities, budgets and personnel between Cariad and Audi remains under development.
Final Wayve Agreement Has Yet to Be Signed
Despite the reported selection, Volkswagen has not yet finalized an agreement with Wayve.
According to the report, Audi’s procurement department is expected to negotiate the commercial terms with the British startup before a final contract is signed.
The reported partnership would give Volkswagen a new technology route for developing higher levels of autonomous driving while allowing Cariad to retain a role in integrating AI software with the Group’s existing vehicle and software architecture.
