Microsoft joins $2 billion fundraising round for GM's Cruise self-driving car company

Cruise now worth $30 billion

Microsoft has taken a stake in the General Motors-run Cruise self-driving car company during a $2 billion funding round that values the operation at $30 billion.

The parties have also entered a technical partnership that will see Cruise use Microsoft's Azure cloud computing platform for its operations.

“Our mission to bring safer, better and more affordable transportation to everyone isn’t just a tech race – it’s also a trust race,” Cruise CEO Dan Ammann said in a press release on the partnership. “Microsoft, as the gold standard in the trustworthy democratization of technology, will be a force multiplier for us as we commercialize our fleet of self-driving, all-electric, shared vehicles.”

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GMGENERAL MOTORS CO.
$51.12
+0.43 (+0.85%)
MSFTMICROSOFT CORP.
$232.38
+3.39 (+1.48%)

Honda, which had previously invested several billion dollars in Cruise, also increased its position during the funding round along with several unnamed institutional investors.

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Cruise recently began testing its autonomous cars on the streets of San Francisco without a backup driver in the driver's seat as it develops its technology with an eye on launching a driverless ride-hailing service using the Origin electric shuttle it unveiled last year.

A fixed timetable for a public roll-out of the service has not been announced, but Amman in December said that 2021 would be an "exciting year."

GM stock was up over 8% in early Tuesday trading following the news.