Microsoft Joins $2 Billion Investment in GM's Cruise Autonomous Unit
Microsoft partners with General Motors and Cruise to accelerate self-driving technology, contributing to a $2 billion funding round that values Cruise at $30 billion. The tech giant will also serve as the preferred cloud provider for both companies.
Microsoft forms a long-term strategic partnership with General Motors and its autonomous vehicle unit, Cruise, to speed up the commercialization of self-driving cars. As part of this deal, the tech giant joins GM, Honda, and other investors in a combined new equity investment of over $2 billion, boosting Cruise's post-money valuation to $30 billion.
Through this agreement, Microsoft becomes the preferred cloud provider for both GM and Cruise. The companies plan to collaborate closely on software and hardware engineering, cloud computing capabilities, and manufacturing to bring autonomous transportation to the mainstream using Microsoft's Azure platform.
The financial markets respond strongly to this news, with GM stock closing up 9.8% at a new record high and Microsoft shares also seeing a slight increase. This partnership supports GM's broader digitization initiatives and aligns with the automaker's massive $27 billion investment in electric and autonomous vehicle development.