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Cerence AI Partners with Arm to Deliver Enhanced LLM Capabilities at the Edge

1. Cerence partners with Arm to enhance its AI language model capabilities. 2. 94% of global automakers use Arm technology in new vehicles. 3. Partnership focuses on real-time language processing in cars. 4. Cerence aims to set new standards for edge computing performance. 5. Arm's Kleidi improves efficiency for automotive AI applications.

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FAQ

Why Bullish?

The partnership with Arm enhances CRNC's product offerings, potentially increasing market share and sales. Historical examples show partnerships in AI often drive stock price increases due to anticipated revenue growth.

How important is it?

This announcement emphasizes CRNC's strategic move into advanced AI solutions, which is crucial for its competitive positioning. The collaboration with Arm leverages industry trends towards smarter vehicles, validating CRNC’s market potential.

Why Long Term?

As the automotive AI market grows, CRNC will likely see sustained demand for its technologies. Competitors also ramping up in this space indicates a long-term growth dynamic.

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BURLINGTON, Mass., May 28, 2025 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC) (“Cerence AI”), a global leader pioneering conversational AI-powered user experiences, today announced a strategic partnership with Arm in which Cerence AI will leverage Arm’s comprehensive software library, Arm® Kleidi™, to advance the capabilities and performance of CaLLM™ Edge, its embedded small language model (SLM). As automakers race to bring AI-powered capabilities to their drivers, they are faced with several challenges, including building enough compute to handle the needs of intensive workloads like large language models (LLMs). Automakers and their partners need easy ways to optimize CPU performance and maximize compute, making it easier for them to deliver the benefits of generative AI to drivers. Cerence AI and Arm are partnering to bridge this gap. With 94% of global automakers leveraging Arm technology in their latest vehicles, Arm automotive solutions provide a foundational compute architecture for AI capabilities throughout the vehicle. Kleidi is designed to accelerate machine learning and optimize neural network operations on Arm-based devices, enabling more efficient and powerful real-time language processing at the edge. Together, Cerence AI and Arm flexibly distribute and parallelize generative AI computation loads between CPUs and GPUs, delivering improved speed and performance for CaLLM Edge, while also supporting enhanced privacy and data security. CaLLM Edge runs fully agentic on Arm-based chipsets optimized with Kleidi, in addition to other SoCs, demonstrating industry-leading performance despite the limited compute power, large size, and intensive processing needs of on-board, in-car language models. As a result, automakers are able to deliver a fast, intelligent user experience for their drivers, even without connectivity to the cloud. "We are excited to partner with Arm to take CaLLM Edge to the next level, setting new standards for performance and efficiency in edge computing in the car," said Nils Schanz, EVP, Product & Technology, Cerence AI. "By combining our expertise in AI-powered language models with Arm’s innovative library, we are continuing our journey to create a new era of voice-first experiences and next-generation AI applications in the automotive space, empowering consumers with smarter, faster, and more responsive in-car assistants." “AI is defining the next generation of sophisticated in-vehicle features, and it’s important that we utilize every optimization possible to ensure AI can run seamlessly at the edge,” said Suraj Gajendra, vice president of automotive products and software solutions, Automotive Line of Business, Arm. “Cerence AI is seeing significant improvements by leveraging Arm Kleidi, and we look forward to continuing our work to rapidly enable new, innovative application-specific AI models in the car.”  To learn more about Cerence AI, visit www.cerence.ai, and follow the company on LinkedIn. For more information about Arm, visit www.arm.com/. About Cerence Inc.Cerence Inc. (NASDAQ: CRNC) is a global industry leader in creating intuitive, seamless, AI-powered experiences across automotive and transportation. Leveraging decades of innovation and expertise in voice, generative AI, and large language models, Cerence powers integrated experiences that create safer, more connected, and more enjoyable journeys for drivers and passengers alike. With more than 500 million cars shipped with Cerence technology, the company partners with leading automakers, transportation OEMs, and technology companies to advance the next generation of user experiences. Cerence is headquartered in Burlington, Massachusetts, with operations globally and a worldwide team dedicated to pushing the boundaries of AI innovation. For more information, visit www.cerence.ai. Contact Information Kate Hickman | Cerence AI | Tel: 339-215-4583 | Email: kate.hickman@cerence.com

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