GM is betting compute and AI will help it compete with Chinese automakers

When GM announced its new fourth-generation EV platform on Wednesday, what the automaker didn’t share was almost as notable as what it did.

The new EV platform, part of a series of technology-focused announcements made during its annual GM Forward event in New York, didn’t talk about suspension geometries, dash-to-axle ratios, and torsional rigidity, all nerdy automotive terms that translate to how people will experience a car. Is it supple or sporty? Does it have a refined stance? When it hits a pothole, does it feel like a bank vault or a paper plate?

Instead,GM’s announcement centered on novel battery chemistries, revamped electric motors, and an entirely new central computing platform and electrical architecture that will connect every system in the car, including acceleration and power, steering, braking, and active safety features as well as software. Lots and lots of software.

“We think vehicles can become a more capable and helpful part of everyday life if we make them spaces that understand context, reduce friction, and give people back moments that would otherwise be consumed by the demands of the road,” Sterling Anderson, executive vice president, global product, and chief product officer at GM, told TechCrunch in a recent interview.

That sure doesn’t sound like a traditional automaker’s pitch. Then again, since the arrival of Tesla, Rivian, and Chinese automakers, the industry hasn’t been the same. Ride and handling still matter, but they’re table stakes. What sets vehicles apart today is largely defined by software.

Anderson has talked about this future GM before. Last year, the company announced plans to overhaul the electrical and computational guts of its future vehicles in a bid to deliver faster software, more capable automated driving features, and a custom, conversational AI assistant.

This year, GM is providing more details and dates. This technological overhaul is set to debut in 2028 with the Cadillac Escalade IQ. The company will also roll out an autonomous highway driving feature in 2028 that will allow drivers to have their hands and eyes off the road and without the need to be ready to take over.

The software race includes hardware

European and U.S. automakers have spent years chasing the prospect of software-defined vehicles but have often fallen short. Volkswagen Group had so much trouble with its own in-house effort, including its troubled Cariad unit, that it struck a $5.8 billion joint venture dealwith relative newcomer Rivian.

GM has been on its own capitally intensive software adventure. The company has bet heavily on software in recent years. It ditched the popular smartphone projection technology Apple CarPlay for nearly all of its EVs, and instead turned to a Google-based infotainment system, which is actually quite capable even if it doesn’t yet live up to the standards set by Tesla and Rivian.

It’s poured billions into software and autonomous vehicle technology development too. GM’s capitalized software amortization expense in 2025 was $866 million, which gives a sense of how much it is spending even as it spreads out the cost over years.

Like many legacy automakers, GM has come to the conclusion that the old approach to electronics, which scattered computer chips throughout the vehicle, was holding it back. 

For fourth-generation EVs, GM will centralize much of those functions on a central compute unit (CCU) that’s 40x more powerful than its existing systems. Eliminating smaller chips on the edges will help trim wiring by 30%, saving weight and simplifying assembly.

GM notes that this new CCU will work on fossil fuel models, too, though it will debut in the Cadillac Escalade IQ, a vehicle that is shaping up to be the automaker’s technological flagship.

The CCU will handle the usual propulsion and chassis controls, as well as perception and active safety. That should help pave the way for more advanced autonomy features, which GM also announced on Wednesday.

Such a move was perhaps inevitable. Pressure on automakers has been building on all sides. 

Domestically, Tesla has been pushing the boundaries of autonomy, in part because it developed a true software-defined vehicle. 

Automakers like GM are also feeling pressure from Chinese manufacturers, which have shortened development cycles to two to three years, down from the usual four to five years.

GM intends to match that cadence. Alongside announcements about battery chemistries and autonomy, GM outlined how enterprise AI tools have sped up vehicle development across every sector as it pushes to slash its traditional four- to five-year development timeline in half.

GM gave a brief glimpse of its revamped development strategy. One example: Engineers went through 300,000 virtual designs of a new lithium-manganese-rich battery pack before they assembled the first physical prototype. That helped the concept move to an approved program in one month.

Such speed will help GM save costs as it races to preserve profitability amid a historic upheaval in the automotive industry. But will it be enough to catapult it back into the leadership position it once enjoyed?

The rise of Chinese automakers won’t make it easy. Their factories are capable of producing far more than Chinese consumers can absorb, and coupled with government subsidies and cheaper labor, these vehicles have flooded markets from Europe to South America with inexpensive vehicles. 

Chinese automakers’ cost advantage is so steep that, without trade barriers, “they will pretty much demolish most other companies in the world,” Elon Musk said in a 2024 earnings call. In response, he has been trying to pivot Tesla from an automotive company to an AI and robotics company.

GM’s move into autonomy signals a similar shift. But to deliver true autonomy, GM realized it didn’t have the platform it needed. With a new architecture, it should have a fighting chance.

Source: techcrunch.com