Mercedes-Benz and Volcano Engine have signed a memorandum of strategic cooperation to collaborate in areas including large models, generative AI and big data.

German luxury automaker Mercedes-Benz has entered into a partnership with ByteDance's cloud services platform Volcano Engine to bring AI (artificial intelligence) capabilities into the cockpits of its vehicles, as Chinese consumers increasingly value the cockpit experience when purchasing a car.

Mercedes-Benz and Volcano Engine signed a memorandum of strategic cooperation to work together in areas including large models, generative AI and big data, the ByteDance unit said in a statement today.

Mercedes-Benz is accelerating digital innovation in China to bring better digital experiences to Chinese customers with AI-powered smart cockpits, the statement said.

It's an extension of the two's previous collaboration, which saw Mercedes-Benz bring Volcano Engine-owned infotainment system to its cockpits in 2023, giving users access to several of ByteDance's audio and video apps that are popular in China.

The latest partnership is expected to enhance the ability to retrieve online information, responsiveness, personalized experiences, and the speed of development of Mercedes-Benz's vehicle smart cabin systems, the statement by Volcano Engine said.

In addition to strengthening cooperation with local partners, Mercedes-Benz is increasing its investment in research and development in China to upgrade the smart cockpit system to bring a more luxurious experience to Chinese customers, the statement said.

The third-generation MBUX human-computer interaction system, first to be available in Mercedes-Benz's new long-wheelbase E-Class model, has upgraded voice assistants that bring faster response times and greater comprehension, according to the statement.

In the future, the third-generation MBUX will be available in more Mercedes-Benz main models, including the long-wheelbase C-Class and long-wheelbase GLC SUV, the statement said.

Mercedes-Benz will debut a new architecture, MB.OS, in 2025, which will decouple hardware and software and allow the car to achieve continuous learning and evolution, the statement said.

The new-generation voice system based on MB.OS will become the user's personal assistant, enabling a 0.2-second wake-up call, multi-tone zone recognition, and a more agile and flexible system, according to the statement.

Mercedes-Benz's R&D investment in China over the past five years totaled RMB 10.5 billion ($1.5 billion), according to the statement.

($1 = RMB 7.1789)

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