AI Skills Arms Race in Automotive
The automotive sector is experiencing an AI skills arms race, with companies seeking AI-focused backgrounds and laying off employees. General Motors laid off 600 salaried employees to make room for new hires with AI expertise.
General Motors has laid off over 10% of its IT department, around 600 employees, in a deliberate skills swap to hire IT people with AI-focused backgrounds. The company is seeking capabilities such as AI-native development, data engineering, and analytics. Other companies, including Ford and Stellantis, have also cut jobs due to technological changes, including AI.
Job Losses and AI Adoption
CNBC calculated that Ford, GM, and Stellantis have cut a combined total of over 20,000 U.S. salaried jobs, or 19% of their combined workforces, from recent employment peaks this decade. Companies are leaning heavily into AI, although some may not know how to utilize it effectively. Samsara, a company that provides cameras for driver monitoring and theft prevention, has developed an AI model to detect potholes and determine their deterioration rate.
Investments and Funding
Investors have poured $12.3 billion into three startups founded by Scaringe, including Rivian, which raised close to $12 billion in its IPO. Other companies, such as Arkeus and Aseon Labs, have also received funding. Rapido raised $240 million in a round led by Prosus, valuing the company at $3 billion. Quantum Systems is in talks to raise around €600 million with companies like Airbus and Blackstone as investors.
Company Updates and Expansions
Tesla Robotaxis have crashed at least twice since July 2025 while being remotely driven. Uber is expanding in India with two new engineering campuses and a data center partnership. Waymo issued a software update to its fleet of vehicles to help them avoid flooded roads. The company is working to solve the problem of how its vehicles behave in these conditions.
Key points
- General Motors laid off 600 salaried employees to hire IT people with AI-focused backgrounds.
- Ford, GM, and Stellantis have cut a combined total of over 20,000 U.S. salaried jobs due to technological changes, including AI.
- Samsara developed an AI model to detect potholes and determine their deterioration rate.
- Rivian raised close to $12 billion in its IPO and received strategic deals with Volkswagen Group and Uber.
- Rapido raised $240 million in a round led by Prosus, valuing the company at $3 billion.
- Quantum Systems is in talks to raise around €600 million with companies like Airbus and Blackstone as investors.
This article was independently rewritten by ManyPress editorial AI from reporting originally published by TechCrunch.
