Cerence partners with MediaTek, NVIDIA for smarter car AI

SHANGHAI - Cerence Inc. (NASDAQ: CRNC), known for developing AI-driven user experiences for the automotive industry, has announced a partnership with MediaTek and an expanded collaboration with NVIDIA to enhance its CaLLM™ Edge technology. With a market capitalization of $338 million and showing significant volatility in recent months, the company has seen its stock surge 174% over the past six months despite current challenges. According to InvestingPro analysis, Cerence maintains a healthy gross profit margin of 68% despite recent headwinds. The announcement came just before the opening of Auto Shanghai 2025, where the company will showcase its latest advancements.

This collaboration aims to deliver a new generation of embedded small language models (SLM) designed for automotive user experiences, providing increased intelligence and contextual awareness for both drivers and passengers. Leveraging MediaTek’s automotive-grade Dimensity Auto Cockpit chipsets and NVIDIA’s GPU, AI, and graphics technologies, the enhanced CaLLM Edge will integrate into Cerence’s hybrid cloud/embedded agentic AI platform, Cerence xUI™.

The updated technology promises to make in-car interactions more intuitive and responsive to the complex needs of vehicle occupants. For instance, the system is designed to discern when to participate in conversations and when to remain silent, as well as to handle simultaneous commands from multiple occupants.

Additionally, the new multi-modal edge solution is fine-tuned for in-vehicle deployment, optimizing performance and cost efficiency for automakers. It also enables the development of advanced features such as monitoring pets inside the car, providing information about external environments, and ensuring safe and reliable brand-specific interactions, even with limited connectivity.

The partnership between Cerence, MediaTek, and NVIDIA also offers benefits for automakers by reducing the need for cloud bandwidth, thereby cutting costs and potentially creating new revenue streams through subscription-based services. While the company’s revenue declined 30% in the last twelve months, InvestingPro data reveals that analysts are optimistic about future prospects, with 6 analysts revising their earnings estimates upward for the upcoming period. For deeper insights into Cerence’s financial health and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

Nils Schanz, EVP of Product & Technology at Cerence AI, emphasized the improved real-time perception and contextual awareness that redefine the in-vehicle experience. Mike Chang of MediaTek highlighted the foundation for powerful multi-modal, AI-driven experiences, while Rishi Dhall from NVIDIA pointed out the potential for setting a new industry benchmark in scalable in-car AI.

The public will get its first glimpse of the Cerence xUI running on NVIDIA DRIVE AGX at Auto Shanghai, which is scheduled from April 23 to May 2. Demonstrations will take place in Hall 8.2, with Cerence at booth 8BD002 and MediaTek at booth 8BE006.

This news is based on a press release statement from Cerence Inc., a company specializing in AI-powered experiences for the automotive sector.

In other recent news, Cerence Inc. announced the appointment of Marion Harris, a former Ford executive, to its board of directors. Harris, who has extensive experience in automotive and financial services, is expected to bring valuable insights to Cerence as it continues to advance its AI technology for in-vehicle experiences. In a separate development, Cerence held its 2025 Annual Meeting of Shareholders, where key proposals were voted on, including the election of board members and approval of executive compensation. All board nominees were elected with strong support, and the executive compensation strategy was approved by a majority of shareholders. However, a proposal to amend the company’s certificate of incorporation to limit certain officers’ liability did not pass. Meanwhile, Raymond James maintained a Market Perform rating on Cerence, citing a stable outlook following the company’s recent financial performance. The analyst noted Cerence’s successful repurchase of $27 million in convertible debt, which reduces financial risk and avoids potential dilution. Despite challenges in the Chinese market, Cerence’s financial management and positive quarterly results were highlighted as factors supporting the rating.

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