Rivian’s Software Play Signals a Bigger Auto Shift

Rivian’s latest software push shows why firms want to own the digital guts of tomorrow’s cars

17 Dec 2025

The contest to shape the car of the future is no longer fought mainly in stamping plants or battery lines. It is fought in code. In December 2025 Rivian used its AI and Autonomy Day to set out a deeper commitment to building its own vehicle software and computing. The message was plain: control the software, or risk losing control of the business.

Rivian’s move reflects a wider shift in America’s car industry. For decades carmakers outsourced much of the digital plumbing to suppliers. That made sense when software played a supporting role. It makes less sense as vehicles become rolling computers. Firms that own their software stacks argue that they can move faster, integrate systems more tightly and choose their own strategic path.

At the centre of Rivian’s approach is a home-grown computing architecture. Designing both the hardware and the software allows more reliable over-the-air updates and smoother performance gains over a vehicle’s life. Buyers are promised cars that improve after purchase, with features added or refined through downloads rather than dealer visits.

Analysts cited by Reuters note that “software-defined vehicles” are changing how cars are built and sold. When software sits at the core, manufacturers can test ideas quickly and try new ways to make money from features and services. The revenue is still modest, but the logic is compelling.

Rivian is not alone. Tesla has long treated proprietary software as a competitive weapon. Waymo’s autonomous systems also rely on code developed largely in-house. Nor is the trend confined to self-driving. Infotainment, connectivity, energy management and remote diagnostics now shape much of the driving experience, and all depend on software.

The financial promise is real but uncertain. Subscriptions for advanced driver-assistance or convenience features offer a hint of recurring income. Take-up varies widely, and profits are far from guaranteed.

The risks are just as clear. Writing and maintaining complex software is expensive. Failures can bring regulatory scrutiny and public embarrassment. Yet the direction of travel seems set. As cars become more connected and more digital, owning the code that runs them looks less like a luxury and more like a necessity.

Rivian’s December push was not merely a product update. It was a statement about where value in mobility is heading, and who intends to capture it.