VW software firm Cariad opens AI Hub in Berlin

At its new Berlin site, around 1,000 experts will immediately begin developing AI technologies for software-defined vehicles (SDVs). These specialists were previously employed across multiple locations. The decision to centralise AI development at the Berlin campus is part of significant strategic shifts within Cariad. Originally, the unit – founded in 2020 by then-CEO Herbert Diess – was intended to independently develop software for the group’s vehicles. However, the plan did not succeed: the software was delayed, disrupted launch schedules, and initially proved prone to errors.

Under CEO Oliver Blume, Cariad was subsequently downsized. Software partnerships with Rivian and Xpeng were established to fill the gap. However, Cariad continues to operate in a reduced capacity, taking on a coordinative role between partners and focusing on related fields such as autonomous driving, infotainment systems, and cloud computing services. Volkswagen now officially presents Cariad as “a modern, professional tech company focused on artificial intelligence.”

This brings us to Berlin, where Cariad employees are set to enhance Volkswagen’s AI capabilities. The scope ranges “from environment perception for automated driving systems to AI-based voice assistants,” as Cariad states in an accompanying announcement. Among the AI solutions already nearing production readiness and being developed in Berlin are an AI-based ADAS stack (‘CARIAD-ADAS-Stack’) and an AI-powered digital assistant (‘CARIAD Digital Assistant’). The former is an integrated system for automated driving, with the first version of the stack set to be deployed in the VW ID. EVERY1. The latter is an AI assistant that understands the driver’s intentions and preferences, handling complex tasks such as route planning. This feature, branded as ‘Voice Pilot’, will debut in the current model year of the Porsche Macan and Cayenne Electric, with further group models to follow.

Volkswagen Group CEO Oliver Blume comments: “For the Volkswagen Group it is clear: The AI-defined vehicle stands for the next generation of mobility. We are driving this development forward consistently – with CARIAD, our strong brands and leading partners. At the Automotive Software Campus in Berlin, technology is being created that makes driving even safer, more comfortable and more attractive.”

Cariad CEO Peter Bosch adds: “The car of tomorrow speaks, hears and drives itself. At the Automotive Software Campus, we bring the senses and the brain for this to life – from environment perception to intelligent interaction with the human in the vehicle. For this, we develop scalable AI platforms and ensure a seamless, safe and reliable integration of AI applications in the vehicle.”

The Automotive Software Campus in Berlin is embedded within Cariad’s global development network. The Volkswagen subsidiary employs a total of around 5,000 staff across software centres in Germany, the USA, China, Estonia, and India. At its peak, Cariad had over 6,000 employees. Volkswagen itself describes the situation as follows: “Since 2023, CARIAD has been comprehensively restructured and significantly streamlined. Today, CARIAD delivers software at the highest competitive level and receives positive feedback from customers, experts, and the trade media.”

Going forward, Volkswagen plans to utilise three SDV architectures: the Global Architecture (developed by Cariad in recent years), SDV East (from the partnership with Xpeng), and SDV West (from the partnership with Rivian). Cariad is also tasked with integrating the platform developed by Rivian into Volkswagen’s numerous brands. Additionally, the VW subsidiary remains responsible for so-called ‘legacy topics’, including the maintenance and updating of Volkswagen’s existing software platforms.

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