What happened
Volkswagen (VW) is developing a bespoke artificial intelligence (AI) chip and an AI-powered advanced driver-assistance system (ADAS) platform, collaborating with Horizon Robotics. This initiative aims to integrate AI across all operations, from design to assembly, for 30 new electric vehicle (EV) models. VW also explores integrating Xpeng's Turing AI chip, which supports autonomous driving and large language models, into specific models for the Chinese market from next year. This strategy targets —4 billion in savings by 2035, following a nearly 10% sales decline in 2024.
Why it matters
The introduction of bespoke and third-party AI chips for critical ADAS and autonomous driving functions creates a significant control gap in the vehicle's operational technology stack. This increases exposure for IT security and engineering teams to potential vulnerabilities within externally developed hardware and software. Procurement faces heightened due diligence requirements for managing these complex supplier dependencies, while compliance teams must navigate the reduced visibility into the security and data handling mechanisms of these integrated AI platforms, particularly concerning regulatory adherence and safety standards.
Subscribe for Weekly Updates
Stay ahead with our weekly AI and tech briefings, delivered every Tuesday.
