Mercedes-Benz has formed a partnership with ByteDances cloud unit, Volcano Engine, to explore large language models (LLMs), generative AI, and big data applications in China. The collaboration focuses on integrating ByteDances LLM technology, which powers AI tools like ChatGPT, into Mercedes-Benzs in-car systems to enhance virtual assistants capabilities, particularly in voice interaction, navigation, and entertainment. This partnership is part of Mercedes-Benzs commitment to expanding its R&D efforts in China, despite Western tech firms shifting supply chains elsewhere. The deal follows ByteDances launch of its Doubao LLM family and its alliance with over 20 carmakers to further AI innovation in the automotive industry. Mercedes-Benz and ByteDance have collaborated since 2023, when Douyin and Jinri Toutiao apps were integrated into Mercedes E-class models in China.