Stellantis N.V. and Microsoft Corp. (NASDAQ: MSFT) announced a five-year strategic collaboration to accelerate digital transformation through AI, cybersecurity and engineering capabilities development.

The partnership will involve co-developing more than 100 AI initiatives across sales, customer care and operations. Joint teams will focus on AI-powered product development, predictive maintenance, testing and faster deployment of digital features and services.

Stellantis will establish an AI-driven global cyberdefense center to protect IT systems, connected vehicles, manufacturing sites and digital products. The system aims to detect cyberthreats using AI-driven analytics and provide consistent protection for connected services and customer data.

"At Stellantis, we have been inventing for more than 100 years with one goal in mind: creating products, services and experiences customers love," said Ned Curic, Stellantis Chief Engineering and Technology Officer. "Through our collaboration with Microsoft, we are accelerating our AI momentum across the enterprise."

The automotive manufacturer plans to modernize its infrastructure using Microsoft Azure cloud services, targeting a 60% reduction in datacenter footprint by 2029. This cloud modernization will support delivery of digital and connected services for customers and strengthen operational resilience across global manufacturing and logistics.

Stellantis has provided enterprise-grade AI tools to its global workforce, with all employees currently having access to Copilot Chat. The company has rolled out 20,000 licenses of Microsoft 365 Copilot to select roles, supported by a dedicated training program.

"Our work with Stellantis reflects a shared ambition to drive AI Transformation responsibly and securely across the automotive value chain," said Judson Althoff, CEO of Microsoft's Commercial Business.

The collaboration builds on an existing alliance between the two companies, combining Stellantis' automotive engineering expertise and global operations with Microsoft's cloud, AI and security capabilities.