Nvidia (NVDA) To Power Cerence’s (CRNC) Transition To Agentic AI Solutions

Cerence Inc., an AI voice technology company that serves the automotive sector, just announced a partnership with Nvidia. The partnership involves improving the Large Language Models (LLMs) that the company uses in the voice assistance technology in vehicles. The stock was up as much as 70% during the first hour of trading.

Cerence Inc. was established in 2019 after a spin-off from Nuance Communications, a firm that itself was two years later acquired by Microsoft for $19.7 billion. It develops AI-powered virtual assistance for automobiles with the intention of helping drivers better interact with their vehicles. The firm serves over 60 vehicle manufacturers across the globe. Its technology can recognize over 70 different languages and dialects, in addition to incorporating facial recognition and compatibility with both Google’s and Apple’s voice assistants.

Cerence’s voice assistance technology integrates with the vehicle operating systems of various automobile manufacturers, including BMW, Fiat, and Mercedes. The company’s most recent product, CaLLM Edge, helps improve the performance of various vehicle systems thanks to its low latency. It also runs on local processors, thus reducing the reliance on cloud connectivity. For the driver, this translates to better voice recognition, especially in noisy environments.

The current collaboration with Nvidia pertains to this CaLLM technology as well. CaLLM will now be able to use Nvidia’s software to improve computing power, thus helping the company offer Agentic AI to vehicle users. According to Nils Schanz, who is the vice president of the company, there is an increased demand from drivers for generative AI-backed solutions, and this partnership will enable the company to cater to that demand.

Just yesterday, the company also announced a multi-year agreement with Jaguar Land Rover (JLR), showcasing how the company continues to serve a large set of clientele. The Nvidia partnership will likely help the company strengthen these relationships while improving its technology.

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Disclosure: None. This article was originally published at Insider Monkey.