Walmart is investing in Cruise, GM's self-driving car company

• Walmart is investing in Cruise, GM's self-driving car startup.
• It will join a $2.75 billion funding round that also includes Microsoft and Honda.
• Walmart previously said it would team up with Cruise for a self-driving delivery pilot.

Walmart is investing in San Francisco-based Cruise, the General Motors-backed self-driving car startup.

The companies announced on Thursday that Walmart will participate in a $2.75 billion funding round. The retail giant's investment comes five months after it announced plans to team up with Cruise for a self-driving delivery pilot in Scottsdale, Arizona.

In a Wednesday blog post, Walmart US CEO John Furner said Cruise is a natural partner for Walmart as it aims to transition to renewable energy sources by 2035 and achieve zero emissions by 2040. Cruise uses all-electric vehicles in its fleet.

"This investment is a marker for us - it shows our commitment to bringing the benefit of self-driving cars to our customers and business," Furner said. "The investment will aid our work toward developing a last mile delivery ecosystem that's fast, low-cost, and scalable."

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Cruise's latest funding round also includes Microsoft, GM, Honda, and institutional investors. It brings the startup's valuation to more than $30 billion, despite still being in the development stage.

"Self-driving cars will make transportation safer, cleaner and more accessible for everyone. Making this happen requires a clear mission, world-class talent, great partners and a lot of capital," Cruise CEO Dan Ammann said in a statement.

The announcement comes days after Cruise announced that it will serve as the exclusive self-driving taxi provider in Dubai starting in 2023.