Microsoft invests 2 trillion won in’GM autonomous driving system’

Input 2021.01.20 17:56

Major foreign media such as Financial Times (FT) and CNBC announced that Microsoft (MS) has decided to invest $2 billion (about 2.2 trillion won) in Cruise, an autonomous vehicle subsidiary of General Motors (GM), along with Honda of Japan. Reported on the day (local time).

In summary, Cruise and GM recently entered into a strategic partnership with Microsoft to accelerate the commercialization of autonomous vehicles. Cruise has been testing self-driving cars around San Francisco, where its headquarters are located, for years.

Microsoft explained that by integrating the excellence of software and hardware, cloud computing capabilities, and manufacturing know-how to innovate transportation, it will create a safer, cleaner and more accessible world for all.

Satia Nadella, CEO of MS, said, “By applying Azure, we will help GM and Cruise grow scale and make autonomous driving mainstream.” Azure is Microsoft’s cloud computing service. In addition to MS, GM and Honda also participated in this investment. The specific investment amount was not disclosed.

With this investment attraction, Cruise’s corporate value has soared to $30 billion. As the news became known, GM’s stock price rose 9.8% from the previous trading day to close at $54.84, hitting the reported price. MS shares closed at $216.44, up 1.8%.

In 2016, GM acquired Cruise, which had only 40 employees, for more than $1 billion. Cruise’s number of employees has soared to more than 2,000 now. The market capitalization accounts for more than 40% of GM’s total.