Microsoft today announced that it has entered into a long-term strategic relationship with GM and its autonomous vehicle unit, Cruise.
The partnership, which also consists of several other institutional investors including Honda, will create an equity investment of over $2 billion, and thus raise Cruise’s valuation to nearly $30 billion. In the announcement, the companies revealed that Microsoft will be the main cloud provider for GM and Cruise, and that the companies will work together on hardware and software engineering, manufacturing, as well as cloud computing capabilities.
Utilizing Azure, Microsoft’s cloud and edge computing platform, Cruise will be able to commercialize its self-driving technology and push autonomous transportation into the mainstream sector. In addition, GM and Microsoft will also explore other ways that the Detroit automaker can streamline its operations with its digital supply chains, in order to deliver mobility services to its customers more efficiently.
GM has been at the forefront of the EV sector, earmarking a total of $27 billion for the production of electric and autonomous vehicles over the next five years. Following news of the partnership with Microsoft, GM shares rose by more than 7% in pre-market trading on Tuesday.
Information for this briefing was found via General Motors and Microsoft. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.