Mercedes-Benz has announced that it is starting a partnership with Google on navigation and intends to provide ‘supercomputer-level performance’ for every car. The cars will be equipped with the sensors needed for autonomous driving, helping the company compete with Tesla and new Chinese brands, Reuters reported.

Collaboration with Google

"This is a licensing agreement that is a 'win-win' for both parties,” Mercedes-Benz CEO Ola Kallenius said at an event at the company's research and development center in Sunnyvale, Calif.

As part of the collaboration, Mercedes-Benz will be able to incorporate Google Maps, Cloud and YouTube services into future cars that will be equipped with the automaker's next-generation MB.OS operating system. Mercedes will also have access to geospatial data offered by Google, including detailed location information, real-time traffic and forecast information, and the ability to automatically change routes.

Mercedes-Benz will use Google Maps data to implement automatic driving assistance features, such as automatic speed control before intersections, traffic circles or curves. However, as Google and Alphabet CEO Sundar Pichai noted, the collaboration will not stop there.

"In addition to enabling Mercedes-Benz to design a customized navigation interface, we'll provide our AI and data capabilities to accelerate their sustainability efforts, advance autonomous driving, and create an enhanced customer experience," Sundar Pichai said.

Proprietary navigation on Google Maps platform

Mercedes-Benz has been working on its own MB.OS operating system for several years, which will be launched in its next-generation vehicles, which are expected to be released by the end of 2024. The company has already built the system based on Linux and designed it to support third-party applications and services, such as those provided by Google. Mercedes, for example, has announced that it plans to build its own navigation system using the new in-car geospatial data and navigation capabilities of the Google Maps platform

However, customers will not have to wait years for the first fruits of this partnership. Mercedes announced that customers will be able to use the Google Place Details service, which will be provided through a software update, starting Feb. 23.

Multibillion-dollar deal with sensor maker

Luminar Technologies Inc., the manufacturer of autonomous driving sensors in which Mercedes has a small stake, announced a multibillion-dollar deal with the automaker to integrate its sensors into a number of the company's new cars.

According to the source, automakers are now in hot competition for software capabilities, such as electric car maker Tesla.

Mercedes-Benz CEO Ola Kallenius said the German automaker agreed to split revenue with semiconductor maker Nvidia Corp (its software partner for unmanned cars from 2020) in 2020 to reduce the high cost of buying semiconductors.