The new company will be called Toyota Connected. It will work with Microsoft to accelerate research efforts for connected cars, autonomous cars and other mobility innovations.
CEO Zack Hicks says the new company will research connecting cars to each other and to homes, as well as telematics features that learn and anticipate a driver's habits. He says connected car networks will be able to share information on road conditions and traffic.
Toyota says the new company already is supporting research into artificial intelligence and robots.