SoftBank commits $2.25bn to General Motors' self-driving car division

The Japanese multinational will also take a 19.6% stake in GM Cruise

SoftBank has announced it's invested $2.25 billion into General Motors' self-driving car division, GM Cruise, to help commercialise the technology GM is developing and make it one of the frontrunners in the autonomous car space.

General Motors said it will also invest $1.1 billion in GM Cruise, offering a significant investment for the company's AV technologies and allowing it to take on the likes of Google and others already innovating in the space.

"Our Cruise and GM teams together have made tremendous progress over the last two years," said GM Chairman and CEO Mary Barra. "Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion."

The investment from SoftBank will come in stages, with the first $900 million arriving immediately after the deal closes. When the technology is ready for commercial deployment, the additional $1.35 billion will be available to GM, subject to regulatory approval. This is expected to happen at the beginning of 2019, GM said.

"GM has made significant progress toward realizing the dream of completely automated driving to dramatically reduce fatalities, emissions and congestion," said Michael Ronen, managing partner, SoftBank Investment Advisers.

"The GM Cruise approach of a fully integrated hardware and software stack gives it a unique competitive advantage. We are very impressed by the advances made by the Cruise and GM teams, and are thrilled to help them lead a historic transformation of the automobile industry."

As part of the agreement, SoftBank will acquire a 19.6% stake in GM Cruise.

"We're excited to be joining forces with a tech leader who shares our belief that AV technology will change the world," said GM President Dan Ammann. "We look forward to partnering with SoftBank as we work toward deploying this technology safely and in massive scale."

Image: Shutterstock

Featured Resources

Transform the operator experience with enhanced automation & analytics

Bring networking into the digital era

Download now

Artificially intelligent data centres

How the C-Suite is embracing continuous change to drive value

Download now

Deliver secure automated multicloud for containers with Red Hat and Juniper

Learn how to get started with the multicloud enabler from Red Hat and Juniper

Download now

Get the best out of your workforce

7 steps to unleashing their true potential with robotic process automation

Download now

Most Popular

Microsoft Windows

This exploit could give users free Windows 7 updates beyond 2020

9 Dec 2019

Patch issued for critical Windows bug

11 Dec 2019
Microsoft Azure

Microsoft, not Amazon, is going to win the cloud wars

30 Nov 2019
big data

Google reveals UK’s most searched for terms in 2019

11 Dec 2019