SoundHound AI Stock Soars After Announcing Integration of Next-Gen Voice Assistant in Major European Car Brands

SoundHound AI (Nasdaq: SOUN), a leader in voice AI technology, saw its stock price surge 22.46% on Wednesday, closing at $5.07. The surge continued in after-hours trading, with the price climbing another 3.55% to $5.25. This impressive jump follows the company's announcement of a major partnership with Stellantis, the automotive giant behind Peugeot, Opel, and Vauxhall brands.

The excitement stems from SoundHound's innovative SoundHound Chat AI voice assistant, which boasts integrated ChatGPT technology. This powerful combination is now live and in production across 11 European markets, including France, Germany, Italy, and the UK, in Peugeot, Opel, and Vauxhall vehicles. The rollout is expected to expand to 17 markets and 12 languages by the end of July.

This isn't the first time SoundHound has made waves in the automotive sector. Back in March, they partnered with Stellantis' DS Automobiles, making them the first automaker to integrate SoundHound Chat AI. The success was immediate, with a reported sixfold increase in voice assistant usage, a 50% rise in interaction frequency, and a 5x decrease in unfulfilled requests. Additionally, customer satisfaction soared, reflected in a 5x increase in the Net Promoter Score.

So, what exactly makes SoundHound Chat AI so special? It goes beyond simple voice commands. This next-generation assistant allows for natural conversation, seamlessly interacting with both in-vehicle controls and external knowledge bases. Imagine asking for the most scenic route on your trip, then following up with inquiries about historical landmarks along the way, all while receiving real-time weather updates and controlling the car's temperature – all through voice commands.

"Our collaboration with Stellantis has put both companies right at the cutting edge of innovation in the automotive sector, bringing the driver experience into a new and exciting era," said Michael Zagorsek, COO of SoundHound AI.

With a market cap of $1.669 billion and a significant volume of 72,947,208 shares traded on Wednesday, SoundHound AI appears to be capitalizing on the growing demand for sophisticated AI-powered voice assistants in the automotive industry. This partnership with Stellantis positions them as a frontrunner in shaping the future of in-car communication, and investors are clearly taking notice.