Mercedes-Benz shifts into high gear with ByteDance partnership

Mercedes-Benz is revving up its tech game by teaming up with ByteDance’s cloud division, Volcano Engine, to explore cutting-edge large language models (LLMs), generative artificial intelligence (AI), and big data.

This turbocharged collaboration aims to supercharge Mercedes-Benz’s in-car systems in China with ByteDance‘s advanced LLM technology, giving their virtual assistants a full-throttle upgrade.

According to both companies, ByteDance’s LLMs will drive future Mercedes-Benz vehicles to new heights, making virtual assistants smarter and more intuitive with sharper intent recognition and logical reasoning. The partnership also promises to accelerate voice system responsiveness and expand capabilities in voice interaction, navigation, and entertainment—putting the pedal to the metal on innovation.

While many Western tech firms like Apple and Dell are shifting parts of their supply chains away from China, Mercedes-Benz reaffirmed its commitment to the Chinese market. Wang Xin, China executive vice-president of Mercedes-Benz, stated that the company is increasing its research and development investment in China and continues to deepen its cooperation with leading Chinese technology firms.

Mercedes-Benz plans to expand its collaboration with Volcano Engine in the future. The partnership between the two companies began in 2023 when ByteDance’s Volcano Cheyu app, which provides access to Douyin short videos and Jinri Toutiao news, was integrated into the Mercedes-Benz E-class long wheelbase model in China.

The announcement of this deal follows closely on the heels of Mercedes-Benz receiving approval from Beijing to conduct level-4 autonomous driving tests on city roads and expressways, making it the first international carmaker to receive such a permit in the Chinese capital.

ByteDance has prioritised AI development since the launch of OpenAI’s ChatGPT in November 2022, which revolutionised the AI landscape. In May, ByteDance introduced the Doubao LLM family, offering competitive pricing compared to its peers, reported Bangkok Post.

In a move to further its influence in the automotive industry, ByteDance also announced the formation of an automobile LLM ecosystem alliance with over 20 carmakers, including local firms Geely and Great Wall Motor. The Volcano Engine website lists Nio, Li Auto, and Mercedes-backed autonomous driving start-up Momenta among its clients.