Volkswagen announce autonomous driving partnership with Wayve
VW is set to collaborate with British AI start-up Wayve on autonomous driving in future. According to media reports, Wayve may have prevailed in an internal comparison - including against Nvidia.
Cariad is to integrate Wayve's software into the existing vehicle architecture.
Image: Kuo-Yi Chao/TUM
Volkswagen has reportedly selected Wayve as its new technology partner for autonomous driving. According to a report by _Der Spiegel_, citing three insiders, the British startup emerged victorious in an internal selection process against Nvidia and other providers.
The report states that Volkswagen tested several systems against each other in a major southern German city a few weeks ago. Wayve reportedly impressed both technically and financially. Volkswagen, its IT subsidiary Cariad, and Wayve all declined to comment to media representatives.
Time is of the essence for the Group. Driver assistance systems are increasingly becoming a competitive factor, particularly in the premium segment. VW subsidiary Audi, for example, is under pressure in the field of automated driving functions when compared directly with Mercedes and BMW. Tesla, too, relies on a highly data-driven software architecture with its FSD system.
Like Tesla, Wayve pursues an end-to-end approach, where AI derives driving decisions as directly as possible from large volumes of sensor data, rather than relying primarily on pre-defined rules. During a test drive, an Audi A6 e-tron equipped with Wayve software reportedly recognised that an oncoming vehicle had waived its right of way with a flash of its headlights and subsequently manoeuvred independently into a parking space, according to _Spiegel_.
Volkswagen integrates Wayve into its software strategy
The potential collaboration with Wayve follows the end of the Automated Driving Alliance between Cariad and Bosch. The alliance had developed an AI-based Level 2 system, which Volkswagen intends to continue using, including in the planned ID.EVERY1. However, for further development towards higher levels of automation, the Group sought a new partner. Wayve had already been considered a potential candidate in the summer.
For Cariad, the selection of the British startup is initially positive. Wayve is expected to primarily provide the AI software, which Cariad would then integrate into its existing technical architecture, including sensors, computing hardware, and other software components.
With Nvidia, the division of roles would apparently have been different. The US company is said to have offered Volkswagen a complete system, which could have made a significant portion of the approximately 1,200 employees in Cariad’s autonomous driving division redundant. However, Nvidia is not necessarily out of the running. The chip manufacturer has a stake in Wayve and supplies computing hardware for the startup’s autonomous driving projects. It remains unclear which hardware Volkswagen will ultimately use.
The decision to partner with Wayve could also impact Volkswagen’s robotaxi activities. The Group has long been searching for an external investor for MOIA but has so far apparently been unsuccessful. Recently, there have been considerations to involve a technology partner like Wayve or Nvidia not only at Cariad but also at MOIA. This could allow Volkswagen to more closely align its passenger car assistance systems and Level 4 robotaxi business technologically.
In parallel, Cariad will continue to downsize. The software subsidiary is to improve its operating result by €400 million and reduce its investments by around €6.1 billion over the next five years. Cariad CEO Peter Bosch has also announced the elimination of around 1,000 of the current 4,000-plus jobs. The distribution of tasks within the Group also remains in flux. Volkswagen is developing the next generation of software-defined electric cars jointly with Rivian. Cariad is to focus more strongly on selected technology areas in the future, including infotainment and autonomous driving.
It remains unclear how budget, personnel, and responsibilities will be distributed between Cariad and Audi in the future. According to the report, a final contract with Wayve has not yet been signed. Initially, Audi’s procurement department is to negotiate the terms with the British startup.
