SoundHound technology is gaining popularity among automotive manufacturers such as Mercedes-Benz and Stellantis, who utilize it to power their in-car virtual assistants. This means drivers can instantly access information about their vehicle’s functionality, along with weather forecasts, sports scores, and local restaurant information (just to name a few possibilities).
Driving Innovation: SoundHound Partners with Nvidia’s Drive Platform
Recently, SoundHound announced a new partnership with Nvidia’s Drive platform, enabling automakers to harness artificial intelligence at the forefront. This means drivers won’t need a network connection to use the voice assistant, making it accessible in more locations and enhancing data privacy.
Nvidia Drive: Empowering Autonomous Driving Capabilities
The Drive platform by Nvidia offers a comprehensive solution for automakers looking to integrate autonomous driving capabilities into their new vehicles. In the long term, Drive could become a key channel for distributing SoundHound technology, as it’s already embraced by many leading global automotive brands.
SoundHound: Small Revenue, Big Losses
In 2023, SoundHound’s revenue amounted to $45.8 million, a 47% increase from 2022. However, the company is still in expansion mode, having ended the previous year with $661 million in unfulfilled orders, doubling from the end of 2022.
Projected Growth and Financial Challenges
Management forecasts the company’s revenue for 2024 to reach approximately $70 million, signifying accelerated growth of 54%. Yet, considering SoundHound AI’s cash burn due to losses and the funds on hand lasting only 12-15 months, investing in SoundHound AI stocks could be highly risky.
Unlocking Potential: Anticipated Growth by 2026
Despite financial challenges, SoundHound AI holds potential for up to 100% growth by 2026, reflecting its innovative approach to automotive technology and partnerships with industry giants like Nvidia.
