VW Group CEO Herbert Diess traveled to Qualcomm's headquarters in San Diego in mid-April, where the companies agreed to the conditions of the deal, Handelsblatt said.
BMW, General Motors and Stellantis are among other automakers teaming up with Qualcomm for advanced software functions.
VW's choice of Qualcomm as a partner for self-driving has surprised industry watchers. They expected the automaker to join with Mobileye, its long-time tech partner, Handelsblatt said.
Mercedes-Benz is working with Nvidia to jointly develop a powerful new computing platform for vehicles capable of supporting everything from over-the-air software updates to driverless car technology.