Volkswagen Reportedly Replaces Mobileye with AI Startup Wayve for Autonomous Driving Push

Volkswagen Group is reportedly preparing to replace Mobileye ($MBLY) with British artificial intelligence startup Wayve as its primary autonomous driving software partner, according to a report by Der Spiegel.
Wayve outperformed competing autonomous systems—including offerings from Mobileye and Nvidia ($NVDA)—across Volkswagen’s internal road testing in southern Germany, winning on both algorithmic performance and pricing terms. During evaluations, test vehicles running Wayve’s "embodied AI" end-to-end model demonstrated strong real-world edge-case navigation, including interpreting complex right-of-way driver gestures and executing tight urban parking maneuvers.
Under the contemplated structure, Volkswagen's software division Cariad will retain internal integration responsibilities—embedding Wayve’s AI model directly into VW’s proprietary vehicle architecture, sensor suites, and compute platforms. The move marks a strategic pivot away from turnkey full-stack suppliers in favor of modular AI software integration, dealing a notable commercial setback to Mobileye while accelerating Wayve’s commercial expansion alongside existing backers SoftBank, Nvidia, and Microsoft.