Blue Cloud & ConnectM sign $50m deal to develop automotive cybersecurity

Blue Cloud Softech Solutions has signed a memorandum of understanding with ConnectM Technology Solutions for the joint development of a semiconductor-based EdgeAI system-on-chip aimed at automotive cybersecurity.

Blue Cloud Softech Solutions, which is listed on the BSE, focuses on AI-driven enterprise and cybersecurity products and services. ConnectM specialises in automotive electronics and hardware systems.

Under the agreement, Blue Cloud Softech Solutions will lead the architecture, design and development of an EdgeAI system-on-chip platform. The companies will build in real-time threat detection, intrusion prevention and continuous security management.

The semiconductor will target Telematics Control Units, Vehicle Control Units and other critical electronic modules in vehicles. The companies expect use in electric, connected and software-defined vehicles.

The partnership marks an expansion by Blue Cloud Softech Solutions into automotive semiconductor development. The company plans to combine its work in cybersecurity software, AI and secure systems with ConnectM's experience in automotive-grade hardware, diagnostics and integration with vehicle manufacturers.

The EdgeAI system-on-chip will be customised exclusively for ConnectM's onboard automotive hardware platforms. Blue Cloud Softech Solutions will retain ownership of the core intellectual property for the semiconductor design and the related cybersecurity technologies.

The memorandum includes a revenue-sharing structure. The companies have agreed a 50:50 split of net revenues from joint commercialisation after costs and taxes.

The partners expect the arrangement to generate a projected business volume of about $50 million over five years from 2026 to 2030. The figure covers global automotive markets where the companies expect demand for secure connected vehicle electronics.

Regulatory standards

The companies plan to engineer the EdgeAI semiconductor solutions in line with key international automotive safety and cybersecurity standards. These include ISO/SAE 21434 on road vehicle cybersecurity and UNECE WP.29 R155 and R156 on vehicle cybersecurity and software updates.

The work will also follow ISO 26262 on functional safety and other international and Indian regulatory requirements. The companies state that these measures will support production readiness, certification and deployment in different regions.

The partners describe the memorandum as a strategic move in response to rising cybersecurity risks in electric and connected vehicles. They aim to offer semiconductor solutions that vehicle manufacturers can integrate into new electronic architectures.

The project focuses on in-vehicle electronics that manage connectivity and control. These units form part of the data and software infrastructure in newer vehicle platforms.

Mobility focus

Both companies see the EdgeAI system-on-chip as part of the shift towards software-defined mobility. They are targeting deployments where vehicle systems depend on continuous connectivity and on-board processing for safety and security functions.

The collaboration also targets shorter development and deployment cycles for original equipment manufacturers. The partners intend to supply hardware and security functions that fit into existing automotive integration processes.

Sri Tejesh Kumar Kodali, Group Chairman of Blue Cloud Softech Solutions, said the agreement marked a notable step in the company's plans for EdgeAI in automotive security.

"This semiconductor development partnership marks a significant milestone for Blue Cloud Softech Solutions as we expand our capabilities into EdgeAI System-on-Chip platforms for automotive cybersecurity. By collaborating with ConnectM, we are combining advanced cybersecurity intelligence with automotive-grade hardware to build secure, future-ready solutions that meet the demands of next-generation mobility," said Kodali.

Blue Cloud Softech Solutions was established in 1991 and works across defence, cybersecurity and enterprise digital transformation. The company has operations in India and several international markets, including the United Kingdom, the United States, the United Arab Emirates, Israel, France, Singapore and Tanzania.

The company also develops connectivity products that use 5G Fixed Wireless Access. It supplies these mainly for mission-critical uses in public infrastructure, railways and other enterprise settings.

Blue Cloud Softech Solutions continues to invest in AI, cybersecurity, secure connectivity and semiconductor-based platforms. The company expects the new automotive EdgeAI project with ConnectM to form part of that broader portfolio.