BlackBerry and Chinese internet search firm Baidu on Wednesday signed a deal to jointly develop self-driving vehicle technology, sending BlackBerry’s Toronto-listed shares up 13 per cent to a four-year high.
The deal follows similar agreements with firms including Qualcomm, Denso and Aptiv to develop autonomous-driving technology with BlackBerry’s QNX software, which are expected to start generating revenue in 2019.
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Investors and analysts are closely watching what comes of those agreements amid expectations that QNX could become a key technology in the burgeoning self-driving vehicle industry, serving as the operating system for computer chips used to run self-driving vehicles.
QNX will be the operating system for Apollo, a platform for self-driving vehicles that Baidu announced in April and has billed as the “Android” of the autonomous driving industry.
“The opportunity is global, it’s for a very large market and I think it’s a very solid win for BlackBerry,” said CIBC Capital Markets analyst Todd Coupland.
Apollo has since signed up several major automakers, including Ford, Hyundai and several Chinese carmakers.
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QNX has long been used to run car infotainment consoles. BlackBerry has recently developed the software to run sophisticated computer chips for autos that manage multiple safety-critical systems.
BlackBerry shares rose 13 per cent in Toronto to C$16.95, their sharpest one-day gain since April and highest close since March 2013.
The two companies said they will also integrate Baidu’s CarLife, a leading smartphone integration software for connected cars in China, its conversational AI system and high definition maps with BlackBerry’s infotainment platform.
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