GM says it has a way to make money with software in new platform called SDVerse

General Motors has partnered with automotive supplier Magna International and technology services and consulting company Wipro Limited to develop a platform where businesses can buy and sell automotive software.

The three companies have all contributed money to develop the platform, which will operate as a stand-alone business. Therefore, GM will have a presence on the board, but it expects limited revenue from it. The real benefit comes in sharing basic software across the industry, thereby freeing up GM's engineers to focus on its own software business, which is key to GM. Two years ago, during an investor conference, GM leaders said that software-as-a-service will generate $20 billion to $25 billion annually in revenue by 2030.

The platform, called SDVerse, is still in development, GM spokesman Stuart Fowle said Tuesday. But when it launches later this year, it will serve as a sort of matchmaking service that simplifies the automotive software sourcing and procurement process between businesses that buy and sell embedded automotive software.

SDVerse will be subscription-based for members, but that subscription cost has not been finalized and will be confirmed later, Fowle said.

Experts say the demand for automotive software is growing.

“The market for automotive software is expected to nearly double this decade, potentially outpacing the growth of software development talent pools,” Harmeet Chauhan, global head of Wipro Engineering Edge, Wipro Limited, said in a statement. “The current paradigm for software sourcing will likely not be able to overcome this growing gap without sacrificing both profitability and the auto industry’s aspirations for software defined vehicles. SDVerse addresses these pain points.”

'First ever software marketplace'

The official launch of SDVerse will be in the third quarter, Fowle said. The goal of the announcement now is "garnering interest and seeing what companies register for more info" on the newly launched website www.sdverse.auto. On April 4, leaders from GM, Magna and Wipro will hold a livestream panel discussion to provide further insights into SDVerse.

SDVerse will be a digital platform where sellers can list their software’s features and attributes, while buyers can search the available software products through a catalogue. Sales and purchases can be connected directly through the platform. GM expects SDVerse to feature hundreds of automotive software products, and companies across "the automotive value chain are invited to join," GM said in a statement.

“This first-ever software marketplace creates an independent, industry-driven one-stop-shop for embedded systems software, significantly expanding access to new innovations, helping to drive down cost, and allowing companies like GM to implement critical software more quickly," Dan Nicholson, GM's vice president of Strategic Technology Initiatives, said in a statement.

SDVerse's current members consist of seven launch partners that sell EV software, semiconductor-related software and software related to vehicle electrical systems or other drivetrain technology. It has appointed Prashant Gulati as CEO effective Tuesday. Prashant has more than 20 years of experience launching and leading auto organizations and is a thought leader in software technology, GM said.

About a year ago at this time, Magna announced it won the contract to supply battery enclosures on GM's 2024 Chevrolet Silverado electric pickup. Joerg Grotendorst, senior vice president of Corporate R&D at Magna, said the company helped develop SDVerse because it will foster collaboration and drive the automotive industry forward.

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This article has been updated to clarify that GM expects limited revenue from this joint venture because it operates as a stand-alone business. The revenue from it will be split between GM, Magna and Wipro.

Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.