EdgeAI SoC Collaboration by Blue Cloud Softech and ConnectM for Automotive Cybersecurity

Blue Cloud Softech Solutions Ltd announced on Wednesday, December 24, that it had signed a Memorandum of Understanding with ConnectM Technology Solutions Pvt Ltd to co-develop an EdgeAI System-on-Chip focused on automotive cybersecurity. The collaboration targets software-defined, connected, and electric vehicles, and is projected to generate about USD 50 million in business between 2026 and 2030.

The announcement also influenced market sentiment. Shares of Blue Cloud Softech Solutions rose 2.9% in early trade, touching an intraday high of Rs 25.20 per share compared with the previous close. The stock opened on the BSE at Rs 24.69 and was last seen trading at Rs 24.97, up 2.00%, valuing the company at Rs 1,089.40 crore.

Under the MoU, Blue Cloud Softech Solutions will lead the architecture, design, and development of the semiconductor-based EdgeAI SoC platform. The planned chip will integrate continuous security management, intrusion prevention, and live threat detection features. These capabilities are aimed at addressing cyber risks within critical automotive electronics and meeting the performance needs of next-generation mobility systems.

The companies have agreed to share net revenues from joint commercialisation on a 50:50 basis after relevant costs and taxes. The projected business volume of around USD 50 million covers the five-year period from 2026 to 2030, and is subject to the execution of definitive agreements. This structure aligns both parties towards long-term semiconductor deployment in global automotive markets.

The EdgeAI SoC is being designed specifically for Vehicle Control Units, Telematics Control Units, and other essential automotive electronic modules. These components are central to software-defined and connected vehicles, including electric vehicles. The semiconductor platform will aim to support secure data processing at the vehicle edge, limiting dependence on external networks for safety-critical decisions.

Blue Cloud Softech Solutions will retain control over the intellectual property linked to semiconductor design and cybersecurity technologies. At the same time, the EdgeAI SoC will be customised only for ConnectM’s onboard automotive hardware platforms. This arrangement ties the chip solutions to ConnectM’s automotive-grade systems while keeping the core design ownership with Blue Cloud Softech Solutions.

The partnership combines ConnectM’s experience in automotive electronics, diagnostics, and original equipment manufacturer integration with Blue Cloud Softech Solutions’ work in cybersecurity software, artificial intelligence, and secure systems. From a strategic angle, the MoU positions both firms to supply secure, scalable semiconductor solutions for connected and electric vehicles, and to support faster, OEM-ready installations.

The jointly created EdgeAI semiconductor products will be engineered to comply with applicable Indian and international regulatory norms. They will also be aligned with global automotive security and cybersecurity standards. The objective is to have System-on-Chip platforms that are certifiable, production-ready, and suitable for deployment across international automotive markets, including vehicles sold in India.

Sri Tejesh Kumar Kodali, Group Chairman of Blue Cloud Softech Solutions, stated that "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."

The collaboration aims to strengthen cybersecurity resilience across the mobility ecosystem as connected and electric vehicles gain wider adoption. By integrating cybersecurity features within the chip and supporting quicker time-to-market, the companies seek to address mounting cyber risks in vehicles while maintaining compliance with regulatory requirements and supporting growth plans for both partners.

The market reaction, projected revenue potential, and focus on regulatory-compliant design highlight why the MoU is important for investors following Blue Cloud Softech Solutions. For finance readers tracking semiconductor and automotive technology exposure, the agreement outlines a defined revenue-sharing model, specific product roadmap, and timelines from 2026 to 2030, anchored by clear roles for both Blue Cloud Softech Solutions and ConnectM.

Parameter	Detail
Projected business volume	USD 50 million
Business period	2026–2030
Revenue sharing	50:50 net revenue split
Intraday high (share price)	Rs 25.20
Opening price on BSE	Rs 24.69
Last traded price	Rs 24.97
Market capitalisation	Rs 1,089.40 crore