• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechToyota

Toyota, Microsoft Partner to Develop Car Tech That Drivers Want

By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
April 4, 2016, 2:28 PM ET
JAPAN-AUTO-TECHNOLOGY-TOYOTA
Japan's auto giant Toyota demonstrates autonomous driving with a Lexus GS450h on the Tokyo metropolitan highway during Toyota's advanced technology presentation in Tokyo on October 6, 2015. Toyota is expecting to commercialise autonomous vehicles before the Tokyo Olympics in 2020. AFP PHOTO / Yoshikazu TSUNO (Photo credit should read YOSHIKAZU TSUNO/AFP/Getty Images)Photograph by Yoshikazu Tsuno — AFP via Getty Images

Toyota has created a new data analytics company in partnership with Microsoft with one aim: bring new Internet-connected services into the car without overwhelming the driver with technology.

The new entity, named Toyota Connect, will use Microsoft’s cloud computing platform Azure to crunch data and help develop new products for drivers, businesses with car fleets, and even dealers.

These new services produce a steering wheel that monitors a driver’s heartbeat and a seat that becomes a scale, vehicle-to-vehicle technology enabling cars to communicate with each other to observe hazards ahead, or a virtual assistant that uses predictive analytics to determine not only where the driver is headed, but the best route to avoid traffic or favorite food suggestions along the route, according to Toyota and Microsoft.

Additional new products could also focus on safety, connecting the car to smart devices in the home, or to city infrastructures designed to ease traffic congestion and locate free parking.

Get Data Sheet, Fortune’s technology newsletter.

Toyota Connect, which will be based in Plano, Texas, builds on Toyota’s existing partnership with Microsoft to research and develop connected car services. Toyota Connect will essentially become the data science hub for the entire company, serving its robotics and artificial intelligence research. Zack Hicks, the president and CEO of Toyota Connect, will also keep his title of chief information officer at Toyota Motor North America.

Microsoft and Toyota didn’t say when these products might appear in cars. But whatever they develop will initially rollout in North America and then expand into other markets, according to Microsoft.

The collaboration illustrates a recent trend among automakers to do more with the data they’re capturing from drivers. Automakers have thrown a lot of technology into cars in a bid to catch up to the functionality of smartphones, on which people have come to rely.

But adding more technology hasn’t always translated into car sales. It’s no longer enough to have a car with Wi-Fi or a Bluetooth connection that allows a driver to pair their smartphone to the car. The most valuable tech is easy to use, intuitive, and integrated with other apps or services.

For more on connected cars, watch:

Toyota is hoping that a car embedded with technology that can bring together all the disparate facets of a person’s life—work, home, fun—will lead to brand loyalty and more sales.

The Japanese automaker has ramped up its investment in data, software development, and artificial intelligence in the past year. Toyota said in September it would invest $50 million in artificial intelligence in a partnership with Stanford University and the Massachusetts Institute of Technology to create two joint research centers focused on using technology to make driving safer. Toyota also committed to devoting $1 billion over five years to the “Toyota Research Institute,” a Silicon Valley-based AI research center.

Toyota announced in October that it wants to put self-driving cars on the road by 2020. Since then, the car giant has bought a 3% stake for $8.2 million in Tokyo-based artificial intelligence firm Preferred Networks and Jaybridge Robotics, a Cambridge, Mass.-based artificial intelligence software firm.

Correction: 6:10 p.m. The initial version of this story incorrectly referred to this as a joint venture. It is a collaboration. The story has been updated.

About the Author
By Kirsten Korosec
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Trump’s AI policy team came into office opposing everything Biden did. Now it’s on the cusp of implementing many of the same policies
CryptoWashington
Trump’s AI policy team came into office opposing everything Biden did. Now it’s on the cusp of implementing many of the same policies
By Sharon GoldmanMay 6, 2026
10 hours ago
The ‘PayPal Mafia’ built a $1.5 billion fintech pioneer. The company they left behind is on life support
Startups & VentureSilicon Valley
The ‘PayPal Mafia’ built a $1.5 billion fintech pioneer. The company they left behind is on life support
By Eva RoytburgMay 6, 2026
11 hours ago
Mark Zuckerberg once gave a Facebook engineer startup advice at 2 a.m. while ‘hanging out with all the interns’—she quit and raised millions after
SuccessMark Zuckerberg
Mark Zuckerberg once gave a Facebook engineer startup advice at 2 a.m. while ‘hanging out with all the interns’—she quit and raised millions after
By Orianna Rosa RoyleMay 6, 2026
11 hours ago
goldman
Investingdisruption
‘FOMO has proven a stronger incentive than poor stock performance’: Goldman Sachs finds insecurity is a key part of the AI boom
By Nick LichtenbergMay 6, 2026
11 hours ago
How Wyndham scales AI to improve hospitality at 8,400 hotels
NewslettersCIO Intelligence
How Wyndham scales AI to improve hospitality at 8,400 hotels
By John KellMay 6, 2026
11 hours ago
donald trump
EconomyDebt
AI could solve America’s $39 trillion debt crisis—but only if Washington abandons displaced workers, Yale Budget Lab warns
By Jake AngeloMay 6, 2026
11 hours ago

Most Popular

A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
Magazine
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
By Sharon GoldmanMay 6, 2026
21 hours ago
Tokyo is throwing out its strict office dress code and asking workers to wear shorts amid the war in Iran energy crisis
Success
Tokyo is throwing out its strict office dress code and asking workers to wear shorts amid the war in Iran energy crisis
By Emma BurleighMay 5, 2026
2 days ago
Economists have found an answer to slowing cognitive decline: avoid retiring early, study finds
Economy
Economists have found an answer to slowing cognitive decline: avoid retiring early, study finds
By Sasha RogelbergMay 5, 2026
2 days ago
Mark Zuckerberg once gave a Facebook engineer startup advice at 2 a.m. while 'hanging out with all the interns'—she quit and raised millions after
Success
Mark Zuckerberg once gave a Facebook engineer startup advice at 2 a.m. while 'hanging out with all the interns'—she quit and raised millions after
By Orianna Rosa RoyleMay 6, 2026
11 hours ago
Dario Amodei spent last year warning of an AI white-collar bloodbath. Now he's changing the narrative
Economy
Dario Amodei spent last year warning of an AI white-collar bloodbath. Now he's changing the narrative
By Nick LichtenbergMay 5, 2026
1 day ago
AI could solve America's $39 trillion debt crisis—but only if Washington abandons displaced workers, Yale Budget Lab warns
Economy
AI could solve America's $39 trillion debt crisis—but only if Washington abandons displaced workers, Yale Budget Lab warns
By Jake AngeloMay 6, 2026
11 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.