GM Cruise receives $2.25bn investment from Softbank Vision Fund

By Pouyan Broukhim

GM Cruise, the autonomous driving division of General Motors, has announced that it is set to receive a new $2.25bn investment from Tokyo-based Softbank’s Vision Fund.

“Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion,” said GM Chairman and CEO Mary Barra.

See also:

The investment gives Softbank a 19.6% stake in GM Cruise, valuing the self-driving startup at $11.5bn.

“The GM Cruise approach of a fully integrated hardware and software stack gives it a unique competitive advantage,” said Michael Ronan, Managing Partner of Softbank Investment Advisers. “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.”

The investment will come in two stages. Initially, Softbank will provide $900mn at the closing of the transaction, later providing the additional $1.35bn as the Cruise autonomous vehicles become ready for commercial deployment.

“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.”

GM expects to reach autonomous vehicle commercialization at scale at the beginning of 2019.


Featured Articles

Patagonia Chair Charles Conn on becoming an imperfectionist

Entrepreneur and Patagonia Chair Charles Conn talks to Business Chief about rethinking strategy amid uncertainty, and why an imperfectionist approach works

Top 10 most valuable brands in the world – Amazon to TikTok

Business Chief takes a look at the top 10 most valuable brands in the world, according to Brand Finance, which puts 5,000 major companies to the test

Four priorities for new Twitter CEO Linda Yaccarino

Elon Musk confirmed on Friday that Linda Yaccarino, who most recently worked as Chairman of Global Advertising at NBCU, would become Twitter's new CEO

Top 10 shifts transforming organisations – McKinsey & Co

Leadership & Strategy

Top 10 fastest-growing jobs in the world according to WEF

Technology & AI

Top 10 female Chief Information Officers in North America

Digital Strategy