Honda partners with AWS for software-defined vehicles

Published 01/07/2025, 02:05 PM
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SEATTLE - Honda Motor Company (NYSE:HMC) is set to transform its automobile lineup into software-defined vehicles (SDVs) by leveraging Amazon (NASDAQ:AMZN) Web Services (AWS), a division of Amazon (AMZN) which has demonstrated remarkable performance with a 56.71% return over the past year. The collaboration will see Honda utilize AWS's Digital Proving Ground (DPG) platform to expedite the development of new electric vehicle (EV) capabilities and mobility solutions. According to InvestingPro, Amazon maintains a strong market position with over $620 billion in revenue, supporting its cloud infrastructure investments.

The DPG platform, built on AWS, will enable Honda to simulate and test new SDV car models in a virtual environment, significantly reducing the need for physical hardware prototypes. This shift is expected to result in faster development timelines and considerable cost savings for the automaker. By integrating AWS's compute, generative AI, and Internet of Things (IoT) services with Honda's data lake on AWS, the company aims to speed up the delivery of software updates and new features to its vehicles.

Honda's use of AWS IoT services is set to enhance vehicle quality, safety, and autonomy by facilitating continuous software development and deployment to vehicles on the road. This includes tracking EV battery data and scheduling preventative maintenance. Additionally, Honda plans to utilize Amazon Kinesis Video Streams to develop applications that can analyze and store footage from car cameras, potentially aiding in the detection of abnormal movement outside the vehicle to prevent collisions or damage.

In an effort to improve the EV charging experience, Honda is developing a solution that employs AWS generative AI services to direct drivers to optimal charging stations. The solution will take into account the driver's location, battery level, charging speed, fees, and proximity to amenities. This feature is expected to debut in Honda's 0 Series line of EVs, aiming to streamline the charging process with personalized recommendations.

To support its cloud-based mobility transition, Honda initiated a joint Expert Builder Initiative with AWS in 2024, focusing on training hybrid talent engineers in cloud technologies, including generative AI, analytics, and IoT. This initiative is designed to foster innovation and enhance the driving experience for Honda customers. Amazon's strong financial health, with a 48.41% gross profit margin, positions AWS as a reliable long-term technology partner.

The partnership between Honda and AWS is indicative of the broader shift in the automotive industry towards digitization and the integration of cloud technology to create intelligent, connected vehicles. This information is based on a press release statement from Amazon Web Services. For a comprehensive analysis of Amazon's financial strength and growth potential, including 15 additional ProTips and detailed metrics, visit InvestingPro, where you can access the full Pro Research Report covering Amazon's market position and future outlook.

In other recent news, Anthropic, an artificial intelligence startup, is in advanced talks to raise $2 billion, potentially increasing the company's valuation to $60 billion, according to the Wall Street Journal. The funding round is led by Lightspeed Venture Partners, and if successful, the deal would make Anthropic the fifth-most valuable U.S. startup. Amazon, a significant investor in Anthropic, has pledged $4 billion to the startup, which will be converted into equity at the valuation established in the current round.

Loop Capital has recently reaffirmed a Buy rating for Amazon, highlighting the strong demand and positive margin outlook for Amazon's key segments, including Amazon Web Services (AWS) and the company's retail operations. Meanwhile, Wolfe Research raised the price target for Amazon, citing AWS growth and automation as key drivers. Wolfe Research expects Amazon Web Services (AWS) to maintain robust and sustainable revenue growth due to increasing demand for AI-based workloads and developments in Anthropic.

Amazon has also issued a warrant to Jabil, a manufacturing services firm, allowing Amazon to buy up to 1.16 million shares in the company. Additionally, Amazon is facing a proposed class action lawsuit for allegedly misusing nearly $350 million in forfeited 401(k) funds. The suit claims that Amazon used these funds to offset its own contributions, rather than to reduce administrative fees for over 20,000 participants.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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