Volkswagen and Horizon Deepen AI Large Model Collaboration Through Joint Venture

Volkswagen Group and Horizon Robotics announced they will further deepen their technical collaboration in the field of AI foundation models through their joint venture, CARIZON. Under the agreement, CARIZON will adopt a white-box licensing model, leveraging Horizon’s AI foundation model capabilities to independently conduct R&D efforts aimed at accelerating the development of a unified AI driving solution for Volkswagen Group in China. According to relevant assessments, assuming all other conditions remain unchanged, this partnership is expected to generate approximately RMB 3 billion in licensing revenue for Horizon over the next three years and boost its gross margin by 10% to 12%. In light of this, Citigroup has initiated a 30-day positive catalyst watch on Horizon and assigned a target price of HK$12.30.