Google and Volvo Deepen Android Partnership, Bringing Faster AI Features to Cars

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Volvo Cars and Google have announced a significant expansion of their long-standing partnership, with the Swedish automaker now becoming the lead development partner for Android Automotive OS, marking a major leap in bringing advanced digital features and AI to vehicles faster than industry competitors.

Volvo’s head of global software engineering, Alwin Bakkenes, told Reuters that this collaboration will give Volvo customers early access to new Android versions, often years ahead of other carmakers. “This really gives us an edge in building fantastic customer experiences,” he said.

While most automakers lag by two Android versions compared to mobile devices, Volvo is now bridging that gap. The company currently runs Android 13 in its vehicles, but at Google’s annual I/O developer conference this week, the companies showcased Volvo’s flagship EX90 electric SUV operating on Android 15, the latest version of Google’s mobile OS. This version will start rolling out in production vehicles later this year.

The enhanced partnership also gives Google engineers access to real-world driving data by testing software in Volvo cars, accelerating development cycles and improving in-car digital experiences.

One of the biggest highlights from the I/O event was the integration of Google’s Gemini AI model into Volvo cars. The system enables drivers to interact with their vehicle more naturally and intuitively. For example, Gemini can search a user’s emails or messages for a destination, or create a shopping list based on a recipe, all via voice command — transforming the driving experience into a “human-centric” digital journey, according to Bakkenes.

The push to integrate advanced AI and the latest Android OS into cars is part of a broader strategy by Volvo to position itself as a software-driven mobility company, moving beyond traditional car manufacturing.

Baidu Says Homegrown Tech Shields AI Ambitions from U.S. Chip Curbs

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Chinese tech giant Baidu asserted on Wednesday that its artificial intelligence (AI) development remains largely insulated from recent U.S. semiconductor export restrictions, thanks to an expanding domestic supply of chips and software. The company also reported stronger-than-expected Q1 financial results, fueled by growth in its AI cloud segment.

“Domestically developed chips and increasingly efficient homegrown software will form a strong foundation for long-term innovation in China’s AI ecosystem,” said Shen Dou, Baidu’s Vice President, during a conference call with analysts.

The statement follows the latest U.S. curbs on advanced chips — including Nvidia’s H20, a product tailored for the Chinese market — which officially took effect last month. Baidu’s confidence mirrors that of rival Tencent, which recently cited existing chip stockpiles as a buffer against Washington’s tightening export controls.

Baidu’s first-quarter revenue rose 3% year-over-year to 32.45 billion yuan ($4.5 billion), surpassing analysts’ estimates of 30.9 billion yuan, according to LSEG. The company’s non-online marketing revenue, primarily driven by its AI cloud business, jumped 40% to 9.4 billion yuan, highlighting Baidu’s accelerating pivot away from its legacy ad-based search engine model.

While revenue from its online marketing segment fell 6% to 17.31 billion yuan — slightly below forecasts — Baidu posted a robust profit of 21.59 yuan per American Depositary Share, up from 14.91 yuan a year earlier.

Baidu has made aggressive moves in the generative AI space since becoming one of the first Chinese firms to launch a ChatGPT-style chatbot in early 2023. However, its flagship Ernie model now faces stiff competition from fast-rising domestic players like DeepSeek.

In response, Baidu scrapped subscription fees for premium AI chatbot services in April and launched enhanced models including Ernie X1 and Ernie 4.5, later upgrading both to “Turbo” versions. The company’s AI ambitions are powered by its self-developed P800 Kunlun chips, with a 30,000-chip cluster said to be capable of training DeepSeek-scale models.

Despite the upbeat earnings and AI momentum, Baidu’s U.S.-listed shares were slightly down 0.3% in Wednesday morning trading.

Malaysia Denies Government Role in AI Project Involving Huawei Ascend Chips

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Malaysia’s Ministry of Investment, Trade and Industry (MITI) has officially clarified that the government is not involved in a reported artificial intelligence project using Huawei’s Ascend chips, distancing itself from earlier reports suggesting official backing.

The clarification follows local media coverage on Monday that claimed Malaysian firm Skyvast Corporation would deploy Huawei’s Ascend AI chips in a domestic initiative. In response, MITI stated the project “was not developed, endorsed, or coordinated by the Government of Malaysia, nor does it form part of any Government-to-Government agreement or nationally mandated technology programme.”

Huawei, for its part, told Reuters that it has not sold any Ascend chips in Malaysia, and that the Malaysian government has made no such purchases. The Chinese tech giant developed the Ascend line after being cut off from U.S. suppliers, positioning the chips as domestic alternatives amid Washington’s escalating export restrictions on advanced semiconductors, particularly from Nvidia.

The Malaysian ministry also reaffirmed its commitment to complying with international export control laws, national security regulations, and guidance from global regulatory bodies. The statement appears aimed at avoiding diplomatic friction amid growing U.S. scrutiny over AI-related tech flows involving China.

Skyvast Corporation has not responded to requests for comment.

The backtracking highlights the sensitivity of semiconductor and AI technology partnerships in the current geopolitical climate, especially as countries weigh alignment with U.S.-led technology sanctions while maintaining ties with Chinese tech firms.