On Wednesday, Mercedes-Benz said that it partnered with Google on navigation and would deliver "supercomputer-like performance" in every vehicle equipped with autonomous driving sensors to compete with Tesla and Chinese upstarts.

Automobile manufacturers are racing to build customer-recognized software systems in collaboration with technology firms. But automakers also like to maintain control of their consumer connections and the valuable data their vehicles collect.

Concerning the mid-decade debut of its new operating system MB.OS Chief Executive Ola Kaellenius said during an event in Sunnyvale, California, that "every Mercedes from that point forward would include a supercomputer."

The automaker earned more than one billion euros ($1.06 billion) from software-enabled revenues in 2022 and anticipated this number to increase to the high single-digit billion euro range by the decade's end.

This is a more conservative estimate as a percentage of total income than those proposed by Stellantis and General Motors.

"We take a cautious approach since no one knows the size of the possible pot of gold at this point," said Kaellenius.

Kaellenius said that vehicles built on Mercedes' future modular architecture platform would include hyper screens that span the cockpit and an extensive array of sensors for automatic driving.

Mercedes-Benz is transitioning from a strategy of integrating software from a variety of vendors to a strategy of controlling the core of its software. 

Nevertheless, the business emphasized in its Wednesday presentation that its objective was to collaborate with partners such as Nvidia and Google for autonomous driving and navigation, respectively.

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Under the Google agreement, Mercedes-branded Google Maps will give drivers Google traffic information, automated rerouting, and the option to view YouTube on the car's entertainment system. At the same time, the vehicle is parked or in Level 3 autonomous driving mode.

Mercedes-Benz has earned approval in Germany and Nevada for Level 3 driving, allowing drivers to take their eyes off the wheel on specified highways as long as they can regain control if necessary.

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Google and Mercedes-Benz agreed to explore further cooperation utilizing Google Cloud data and AI capabilities.

Several automakers, like General Motors, Renault, Nissan, and Ford, have integrated a whole suite of Google services inside their automobiles, including Google Maps, Google Assistant, and other apps.

Self-driving sensor manufacturer Luminar Technologies Inc, in which Mercedes has a tiny share, said in a separate statement that it had reached a multibillion-dollar agreement with the automaker to incorporate its sensors into various cars by mid-decade.