SoundHound AI (NASDAQ: SOUN) saw its stock price jump by 21% on January 21, following the announcement of a partnership with Rekor Systems (NASDAQ: REKR).
The collaboration aims to integrate SoundHound’s advanced voice AI technology with Rekor’s vehicle recognition AI software, Rekor Scout to improve emergency vehicle operations.
Adding to the momentum, President Donald Trump’s recent decision to ease regulations on artificial intelligence (AI) appears to have boosted investor confidence across the AI sector, with SoundHound’s momentum reflecting this optimism.
Picks for you
As of press time, SOUN stock is trading at $16.41, marking a decline of nearly 17% year-to-date. However, the stock remains a standout performer, with a remarkable 754% gain over the past year.
SoundHound partnership details: A leap in emergency vehicle technology
The surge in SoundHound AI’s stock can be traced to its newly announced partnership with Rekor Systems, marking a significant step forward in public safety innovation.
The collaboration integrates SoundHound’s conversational AI with Rekor’s vehicle recognition platform, Rekor Scout, to deliver hands-free solutions for police and emergency vehicles.
The technology enables officers to control essential vehicle systems, such as sirens, light bars, and automatic license plate recognition (ALPR), using voice commands. This hands-free functionality is expected to enhance safety, improve situational awareness, and boost operational efficiency during high-pressure scenarios.
Initially targeting police vehicles, the partnership plans to extend its AI-powered technology to other emergency vehicles, including fire trucks and ambulances, broadening its reach across the public safety sector.
“Partnering with Rekor allows us to bring this innovation to law enforcement, where we can empower officers with a hands-free solution that can improve safety, reduce distractions, and support responsiveness in the field. Together, we’re creating the future of voice-enabled police vehicle technology.” – Keyvan Mohajer, CEO of SoundHound.
Expanding horizons: A diversified AI portfolio
SoundHound is leveraging its voice AI expertise to penetrate new verticals. Its AI-powered customer service solutions are now deployed by hundreds of enterprise brands.
The company’s success extends to the automotive sector, where it recently secured a significant deal with a new electric vehicle (EV) OEM in the Middle East during the third quarter.
With a growing ecosystem of customers and partners, SoundHound is building a foundation for robust revenue growth and improved operational performance.
H.C. Wainwright analyst Scott Buck expressed confidence in SoundHound’s trajectory, encouraging investors to take advantage of the recent pullback to build positions ahead of potentially stronger results in 2025.
However, challenges persist on SoundHound’s path to profitability. Despite its growth, the stock’s lofty valuation, trading at 40 times projected sales, according to StockAnalysis, makes it highly susceptible to market fluctuations.
Featured image via Shutterstock
