General Motors Autonomous Startup 'Cruise' Gets $2.25 Billion Investment

With level 3 and level 4 autonomy already in production or just around the corner, most automakers have started looking at cars that are equipped with level 5 autonomous technology. General Motors might have left behind the lucrative Indian market but they are looking into the future with their automotive startup Cruise, a technology company that will make Level 5 autonomous tech. And now, it gets a big boost in the arm with SoftBank Vision Fund announcing a massive $2.25 Billion investment into the firm. In addition, General Motors will also invest an additional $1.1 Billion post the SoftBank investment into Cruise thereby giving it a big push towards quicker and faster - and more modern tech.

SoftBank has announced that the investment will be made in two steps. Initially, SoftBank will invest $900 Million into Cruise for the development of hardware and software. Cruise will of course conduct rigorous testing on cars like the Chevrolet Volt in order to make its system fool proof. The second round of investment will come when the Cruise autonomous vehicles are ready for commercial deployment sometime in 2019. In exchange for the investment, SoftBank Vision Fund will own 19.6 per cent equity in GM's Cruise.

Speaking on the occasion, Mary Barra, CEO and Chainman, General Motors said, "Our Cruise and GM teams together have made tremendous progress over the last two years. Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion." Also speaking on the investment, Michael Ronen, managing partner, SoftBank Investment Advisers said, "GM has made significant progress toward realizing the dream of completely automated driving to dramatically reduce fatalities, emissions and congestion. 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."

General Motors and Cruise isn't the only automaker investing heavily into Level 5 autonomous tech though. Automakers like Mercedes-Benz, Ford, the Volkswagen Group and others are also heavily invested into research both in terms of hardware and software with regards to Level 5 Autonomous tech.