SoftBank will invest $2.25 billion in GM's Cruise self-driving car division
- SoftBank will invest $2.25 billion in General Motor's Cruise Division.
- GM will follow with a $1.1 billion investment.
- GM acquired Cruise Automation, a San Francisco startup, in 2016.
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On Thursday, General Motors announced a substantial new investment in its self-driving car division, Cruise, from Japan's SoftBank.
"The SoftBank Vision Fund will invest $2.25 billion in GM Cruise ... further strengthening the company's plans to commercialize AV technology at large scale," the automaker said in a statement.
"Our Cruise and GM teams together have made tremendous progress over the last two years," GM Chairman and CEO Mary Barra added. "Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion."
The SoftBank investment will involve two phases: a $900-million initial funding, followed by a $1.35 billion round.
Ultimately, SoftBank will take a nearly 20% equity share in Cruise, which has been operating as a stand-alone GM unit.