Cruise, the San Francisco-based robotaxi developer backed by General Motors, is getting financial and technological support from Microsoft
The tech giant is leading a new $2 billion funding round for Cruise, which also includes backing from GM, Honda and institutional investors, and is making its cloud computing platform Azure available for the company’s developers. With the new investment round, Cruise estimates its valuation is now $30 billion.
“Advances in digital technology are redefining every aspect of our work and life, including how we move people and goods,” Microsoft CEO Satya Nadella said in a statement. “As Cruise and GM’s
The new partnership with Microsoft strengthens Cruise’s push to get its autonomous electric Origin vans on the road as it vies with competitors including Alphabet’s Waymo and Amazon’s
“Our mission to bring safer, better, and more affordable transportation to everyone isn’t just a tech race–it’s also a trust race,” said Cruise CEO Dan Ammann. “Microsoft, as the gold standard in the trustworthy democratization of technology, will be a force multiplier for us as we commercialize our fleet of self-driving, all-electric, shared vehicles.”
Last month Cruise said it had begun testing vehicles in San Francisco without a safety driver behind the wheel for the first time, months after receiving a permit from California to do so. The company, cofounded by CTO Kyle Vogt, originally hoped to start operating commercial robotaxis, at least on a limited basis, by 2019 before conceding the technology wasn’t ready to do so.
“Microsoft will help us accelerate the commercialization of Cruise’s all-electric, self-driving vehicles and help GM realize even more benefits from cloud computing as we launch 30 new electric vehicles globally by 2025 and create new businesses and services to drive growth,” said GM Chairman and CEO Mary Barra.
Waymo’s small-scale robotaxi service in suburban Phoenix is currently the main commercial autonomous vehicle program in the U.S., though the company doesn’t yet provide detailed ridership or revenue figures. Like Cruise, Zoox is also planning to operate robotaxis in San Francisco but hasn’t said how soon that will happen.
Microsoft’s previous forays into autonomous vehicle development include serving as the data partner for Michigan’s American Center for Mobility and providing its Azure technology for use by Apollo, the open-source software initiative led by China’s Baidu
Shares of General Motors, which said it’s also working with Microsoft on “digitization initiatives including artificial intelligence and machine learning, rose more than 6% to $53.08 in early New York trading.