Cerence Inc. shares have risen thanks to the contract with Toyota.
Japanese automaker Toyota has chosen Cerence Inc. (CRNC) solutions for a new multimedia system. The news caused the CRNC quotes to rise by 5.27% to $72.85 at the auction on December 16. Clarence has a set of solutions for a new generation of transport, for example, speech recognition tools for connected cars.
Toyota will use Clarence solutions in a new generation multimedia system planned in cars under the Toyota and Lexus brands. With its help, the driver and passengers of cars will use voice search on the Internet, receive real-time information about the weather, exchange rates, reports from exchanges, the location of the nearest service points, plot routes, etc. The first Toyota cars with the Cerence system will be Lexus NX and Toyota Tundra, which will enter the market in 2022.
The contract with Toyota is Cerence’s first major deal to sell its new tools. It is a strong positive signal indicating the value of Cerence developments. They on artificial intelligence (AI) algorithms that continuously analyze sounds in the car and recognize speech, waiting for a command. Some functions of the new Toyota multimedia system will be available in advanced options or by subscription, which means additional monetization opportunities for Cerence.
Thus, Cerence is successfully developing its intelligent multimedia environment to interact with natural speech. As a result, the demand for such technologies will increase, and they will occupy a special place in the automotive market as a tool for controlling robot cars and TaaS services.
