How Paid Software Is Reshaping the Business of Driving

Control of software, not hardware, is becoming the main prize in the auto industry

15 Dec 2025

On December 11th Rivian gathered investors and engineers for an Autonomy & AI Day. The news was not a new vehicle or a cheaper battery, but something less visible: plans to build its own autonomy software and a custom computing chip, with paid driver-assistance features due in early 2026. For carmakers, the future of driving now runs through code.

The shift reflects a broader change in how vehicles are made and sold. Cars are no longer treated as finished products when they leave the factory. They are increasingly digital platforms, updated over time and monetised through software. By bringing autonomy systems and computing in house, Rivian hopes to cut its reliance on suppliers and create steady revenue long after the first sale.

This approach echoes the model pioneered by Tesla, which showed that features unlocked through updates and subscriptions can lift margins and customer loyalty. Other manufacturers are drawing the same lesson. Analysts cited by Reuters argue that tighter control of software allows firms to move faster, respond more easily to regulation and keep more of the value generated over a vehicle’s life. Investment is following that logic.

The consequences reach beyond carmakers themselves. Technology suppliers such as Nvidia, whose standardised systems dominate today’s driver-assistance market, could face pressure if more manufacturers build their own platforms. Power within the supply chain would tilt towards firms able to fund long-term software development and absorb the risks that come with it.

For buyers, the promise is mixed. Software-led cars can improve quickly and offer more tailored features. But paying extra for capabilities that used to be standard remains unfamiliar. Trust in driver-assistance systems is still fragile, and regulators are watching closely how such features are marketed and deployed.

Even so, the direction is hard to miss. As growth from electric drivetrains slows, software is becoming the industry’s next engine. Rivian’s announcement underlines a wider truth: the competitive battle in mobility is moving from the workshop to the server room. Those who write the code will shape the road ahead.