MS Invests $2 Billion in GM Autonomous Driving Subsidiary

Expansion of Autonomous Vehicle Competition Including Hyundai Motor Company

[Asia Economy New York=Correspondent Baek Jong-min] The world's largest software company Microsoft (MS) has decided to make a large-scale investment in the autonomous vehicle development of automobile manufacturer General Motors (GM).

Futuristic Electric Vehicle and Vertical Takeoff and Landing Drone Presented by GM
[Image Source=Yonhap News]

On the 19th (local time), Cruise, GM's autonomous driving subsidiary, announced that it had secured a $2 billion investment from MS. As a result, Cruise's corporate value has surged to $30 billion.

MS has joined GM's autonomous vehicle development alongside Honda and Japan's SoftBank, who have already invested in Cruise.

Cruise expects MS's investment to help commercialize its autonomous driving technology. Satya Nadella, CEO of MS, also stated, "We will help automakers participate in the changes of the era."

Cruise is a company strategically nurtured by GM after acquiring the autonomous driving startup Cruise Automation. Its main competitors include Google's Waymo and Aptiv, which established a joint venture with Hyundai Motor. Hyundai Motor, under the leadership of Chairman Chung Euisun, established the joint venture 'Motional' with Aptiv.

Chairman Chung, after agreeing to establish the joint venture with Aptiv in 2019, met with correspondents in New York and revealed plans to "begin pilot operations of autonomous driving by the end of 2022 and mass-produce (autonomous vehicles) in 2024."

Meanwhile, on expectations of MS's increased investment, GM's stock price surged 8% in the New York stock market that day. GM's stock price had been on the rise last week following the announcement of an expansion in its electric vehicle business at CES2021.