European-American automaker Stellantis (STLA), which is plotting a turnaround of its business, has secured a five-year artificial intelligence deal with tech giant Microsoft (MSFT) “to enhance customer experiences.” However, the news failed to cheer investors, with the auto giant’s shares trading flat on Thursday morning.
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Stellantis, Microsoft Plan 100+ AI Initiatives
Microsoft and Stellantis on Thursday said they were expanding their long-standing relationship and plan to jointly develop more than 100 AI initiatives across sales, customer care, and operations. Both companies are aiming to work together to develop advanced AI, cybersecurity, and engineering capabilities.
The partnership comes as Stellantis slipped from profit to loss in 2025 after taking a €22 billion ($26 billion) charge to scale down its electric vehicle production efforts. The company had said it overestimated the pace of the energy transition and was out of touch with “many car buyers’ real-world needs, means, and desires.”
Stellantis Modernizes Infrastructure with Microsoft’s Azure
As part of the deal, Stellantis will contribute its engineering expertise while Microsoft will bring its cloud, AI, and security platforms to the table. Stellantis plans to deploy and operate an AI-driven global cyberdefense center to help secure the digital vehicle experience.
This partnership will deliver “real value for millions of drivers worldwide,” said Judson Althoff, the chief executive for Microsoft’s commercial business.
Still under the arrangement, Stellantis plans to modernize its infrastructure by moving it to Microsoft’s Azure cloud service, aiming to reduce its data center operations by 60% by 2029. The automaker is also equipping its employees with Microsoft 365 Copilot and has already launched an initial 20,000 licenses.
“Stellantis and Microsoft will continue to advance this collaboration over the coming years by working side‑by‑side and engaging Microsoft‑certified partners where specialized expertise is required,” the companies said in a statement.
Is STLA a Good Stock to Buy Now?
On Wall Street, Stellantis’ shares currently carry a Hold consensus rating from analysts. This is based on five Buys, 10 Holds, and one Sell assigned over the past three months.
However, the average STLA price target of $9.06 suggests about 10% upside from current trading levels.
