Cerence

Cerence is an AI company that develops voice recognition and automotive AI assistant technology for vehicle and mobility OEMs. The company was spun off from Nuance Communications, a multinational computer software technology corporation, and debuted as an independent public company (listed on the Nasdaq) in October 2019. 

Cerence offers a suite of AI-powered solutions for the automotive industry, centered around its flagship product, “Cerence Assistant.” This in-car assistant platform integrates advanced AI with vehicle systems to provide contextual, personalized support to drivers. Its other products include audio AI, apps and services, and multi-modal interactions. Its Audio AI suite features acoustic noise reduction, multi-zone speech recognition, and voice biometrics for enhanced in-car audio experiences. Cerence's apps and services include an in-vehicle web browser, a voice-activated payment system, and an AI-powered tour guide. The multi-modal approach combines voice commands with gaze detection, gesture control, and emotion AI to create an intuitive and responsive in-car environment.

The company also offers language models that enable natural interactions between humans and vehicles. Those offerings include 1) Cerence Automotive Large Language Model (CaLLM), which serves as the foundation for its next-gen in-car computing platform that runs on NVIDIA DRIVE, and 2) CaLLM Edge, an automotive-grade embedded small language model (SLM) that can handle car control commands, point-of-interest search, navigation, and conversational interactions. 

The company's intellectual property includes ~800 patents focused on automotive-specific data and end-to-end solutions (as of November 2024).

Cerence generated revenue of USD 294.5 million and an adjusted EBITDA of 41.5 million during the year ended September 2023.

Key customers and partnerships

The company claimed to have supplied its technology to 80+ OEMs and Tier-1s to be used for over 500 million vehicles as of November 2024. Cerence’s key customers include Ford, Subaru, Land Rover, Suzuki, Mahindra, TATA, Hyundai, Mercedes-Benz, Maruti Suzuki, NIO, SsangYong, General Motors, Volkswagen, Audi, SAI, Zeekr, BMW, Smart and Škoda, and Renault.

The company also has product partnerships with parties such as LG Electronics to co-develop an in-vehicle infotainment system (January 2020), Pioneer to develop conversational AI infotainment solutions (June 2021), and Microsoft to integrate its Azure AI Services into companies portfolio (January 2024). 

Key competitors: None comparable (Cerence is the only startup in the Auto Tech space that develops voice assistant features for vehicles.)