Mercedes-Benz is advancing its in-car technology strategy through a new multi-year partnership with Liquid AI, aimed at developing embedded artificial intelligence for vehicles equipped with third- and fourth-generation MBUX systems in North America.
The collaboration focuses on deploying on-device AI capabilities that operate directly within the vehicle, reducing reliance on cloud computing. According to Mercedes-Benz, this approach is expected to deliver faster response times, improved data privacy, and more reliable performance for everyday driving scenarios.
At the core of the initiative are Liquid AI’s Embedded Liquid Foundation Models, which are designed to run on vehicle hardware rather than remote servers. These models support functions such as speech recognition, natural language understanding, and reasoning without requiring a constant internet connection. The automaker said this will enable more secure and efficient in-car intelligence.
The new technology will be integrated into the Mercedes-Benz User Experience (MBUX) Virtual Assistant, enhancing its ability to combine voice commands, vehicle controls, and contextual awareness. The goal is to create a more natural and intuitive interaction between driver and vehicle.
Built on the Mercedes-Benz Operating System (MB.OS), the system is scheduled for an initial production rollout in the second half of 2026.
Jörg Burzer, Chief Technology Officer of Mercedes-Benz Group AG, said the partnership is designed to scale embedded intelligence across the company’s vehicles. He noted that on-device processing will strengthen speech and language capabilities while supporting the next generation of multimodal in-car experiences.
Mercedes-Benz also highlighted that Liquid AI specializes in lightweight foundation models optimized for low latency and high performance. These characteristics are expected to ensure smooth and consistent system behavior, even under varying driving conditions.
Liquid AI described software-defined vehicles as a key real-world application of artificial intelligence, noting that its models are engineered to function with existing in-vehicle hardware without depending on continuous cloud connectivity.
The automaker added that the new embedded AI system will complement its existing cloud-based tools. By combining both approaches, Mercedes-Benz aims to enhance overall system performance and deliver a more seamless user experience.
Both companies indicated that the partnership could expand further as they explore additional opportunities for collaboration in future vehicle technologies.
