Photo = REUTERS
General Motors (GM) and Microsoft (MS) join hands for autonomous driving. Just as Apple intends to enter the electric vehicle market through collaboration with Hyundai Motor Company, Microsoft is also working with GM.
Cruise, GM’s autonomous driving subsidiary, announced on the 19th (local time) that it has entered into a long-term strategic alliance with Microsoft. Through this, Microsoft and its existing shareholders GM and Honda will all invest more than $2 billion. The size of Microsoft’s investment is unknown. As such facts were reported, GM shares surged 9.75% on the day.
Cruise announced that it plans to commercialize autonomous driving services in the future using Microsoft’s cloud computing service Azure, through this alliance. Autonomous driving service requires collecting and analyzing vast amounts of data from vehicles.
Cruise’s Chief Executive Officer Dan Aman said, “The partnership with Microsoft, which has reliable technology, will help Cruise commercialize self-driving electric vehicles.” “The advancement of digital technology is redefining every aspect of our lives and work,” said Satia Nadella, CEO of Microsoft. GM also said that Microsoft will be the preferred provider of cloud services and will help streamline supply chains and launch new digital services.
The Wall Street Journal (WSJ) pointed out that Microsoft’s investment is “a sign that interest in the area of autonomous driving technology has resumed after a quiet period.” Google has been developing autonomous driving technology through its subsidiary Waymo, and Amazon acquired ZOX, an autonomous driving technology company last year. In the case of Apple, it is negotiating with Hyundai Motor Group to produce self-driving electric vehicles.
Cruise’s corporate value was recognized at $30 billion in this investment. It was much higher than $19 billion when it was attracted to capital in March 2019. Cruise has been developing autonomous driving technology and was acquired by GM in 2016. GM’s CEO Mary Barra has invested heavily in electric vehicles, connected cars and autonomous vehicles.
Reporter Kim Hyun-seok [email protected]
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