Volkswagen’s Silicon Valley Tech Hub Attracts a Wealth of Talent from Rivian

The recent partnership between Volkswagen Group and Rivian, valued at a whopping $5 billion, is still fresh news. However, well before the partnership’s public disclosure, VW Group was already engaging with Rivian for its software development prowess.

Over the preceding months, Volkswagen Group’s struggling software division, Cariad, has poached at least 23 elite personnel from the startup, an examination of LinkedIn profiles by TechCrunch demonstrates. Among those who made the leap are Rivian’s veterans, including Cariad’s head of software, the lead of product security, a couple of vice presidents, and two key engineers. The rest of the talent pool also includes individuals who held high-ranking software positions at Rivian, with many transitions occurring within this year.

These acquisitions took place well ahead of any formal agreement between VW and Rivian. While the collaboration aims to harness Rivian’s expertise in software and electric vehicle architecture, the details are still being ironed out. Official confirmation of the joint venture is anticipated in the final quarter, a point accentuated by spokespeople from both VW and Rivian.

This influx of new talent underscores Volkswagen’s, and particularly Cariad’s, endeavor to secure top-notch software engineering skills. Such strategic hires are expected to be highly beneficial as the joint venture progresses.

These personnel have significantly contributed to Cariad’s push to establish a major presence in Silicon Valley through the creation of the SDV Hub in Mountain View. The “SDV” acronym stands for “software-defined vehicle,” a concept widely pursued by car manufacturers. This hub is the birthplace for Cariad’s “software 2.0” architectural framework.

In the autumn of 2023, Cariad brought on Sanjay Lal, previously a leading figure in developing Rivian’s infotainment and advanced middleware solutions. Lal’s task is to spearhead the development of the SDV hub. The group working at this California-based hub, along with some counterparts in Germany, are focusing on the cutting-edge software 2.0 structure, which is intended to serve as a universal operating system across all brands within the VW Group.

The integration of these employees into the forthcoming joint venture with Rivian is suggested, although representatives from both companies have deemed such talk as premature.

“At this moment, our joint endeavor with Rivian to ensure a smooth initiation is our primary aim, and we will provide updates on further developments in due course,” stated VW in an email.

While Cariad boasts a global workforce exceeding 7,000, its North American sector is considerably smaller. The SDV hub currently employs about 230 people, as per LinkedIn. Thus, recent recruits from Rivian now constitute roughly 10% of Cariad’s regional staff.

These Rivian alumni join Cariad amidst a pivotal restructuring phase following years of challenges. Launched in 2020, Cariad was VW’s ambitious bid to expedite the advancement of sophisticated software and electrical systems for its electric vehicle ventures. Yet, as the division expanded, so did its complications, culminating in delayed projects and several high-level managerial changes, contributing to the removal of VW Group CEO Herbert Diess in 2022.

Under the leadership of Peter Bosch, Cariad has now successfully completed the development of the 1.2 software architecture for the forthcoming Porsche Macan EV. The ambition moving forward is for the 2.0 framework to elevate all VW Group brands to compete directly with industry giants like Tesla.

The strategy of sourcing talent from companies such as Rivian marks a departure from Cariad’s previous recruitment methodology in North America, which mainly saw integrations from within the Volkswagen Group or from automotive and software suppliers. Notable is the hiring of Cariad’s director of software engineering, who came from a nearly decadelong career at Google.

The pursuit of talent from innovative startups like Rivian is not isolated to VW and Cariad; Ford is also engaging in similar recruitment efforts for its secretive low-cost EV project, targeting personnel from Rivian, Tesla, Lucid Motors, and even individuals from Apple’s discontinued Project Titan, as early reports by TechCrunch have shown.