Rivian CEO RJ Scaringe is pushing major carmakers to license its software technology, warning traditional players will lose market share without better autonomous and AI capabilities. Following its $5.8 billion joint venture with Volkswagen, Rivian hopes to convince more legacy automakers to avoid spending billions on in-house tech development. The company's electrical architecture and autonomous software could help reduce vehicle costs by thousands per unit while extending EV range.

Scaringe argues that retrofitting older systems and coordinating with hundreds of suppliers is an "immensely inefficient way" to deliver software. The VW partnership, which includes the upcoming €20,000 ID.Every1 electric vehicle, serves as "existence proof" that Rivian's technology is transferable. The deal currently focuses on electrical architecture but could expand to autonomy, AI, and propulsion over time. Rivian's shares have plunged 87 percent since its 2021 IPO as the startup faces steep losses.

Despite selling 42,000 vehicles last year, Rivian posted a $3.6 billion net loss. The company hopes its new R2 SUV will target the $45,000-$55,000 "sweet spot" in the market. Recent deals include Uber's potential $1.25 billion investment and purchase of up to 50,000 self-driving R2s by 2030. However, even with these partnerships, Rivian projects its net loss will only narrow to $2.1 billion this year as it continues investing in Level 4 driverless autonomy.