Microsoft has entered into a long-term strategic partnership with General Motors and Cruise, the automaker’s majority-owned autonomous car unit, to accelerate the sale of self-driving cars.
As part of the partnership, the major technology company will join GM, Honda Motor and other institutional investors in a new multi-billion dollar investment in Cruise, bringing Cruise’s estimated valuation to $ 30 billion. The company did not breakdown the new funding by company.
Cloud Services By Microsoft
In a statement on Tuesday, companies said Microsoft would become the popular cloud provider of GM and Cruise. The companies said they would work collaboratively in software and hardware engineering, cloud computing skills, production and environmental program partners.
“Advances in digital technology redefine all aspects of our work and our lives, including how we move people and goods,” Microsoft CEO Satya Nadella said in a statement. “As the most popular cloud for Cruise and GM, we will use the power of Azure to help them scale and expand autonomous transportation in the mainstream.”
Stock Reaction
GM stocks closed up 9.8% at $ 54.84 per share, setting a new closing record after hitting a high intra-day of $ 55.14 last Tuesday. The automaker’s market capitalization is $ 78.5 billion. Microsoft Stocks closed up $ 1.8% with $ 216.44 per share.
Cruise will use Azure, Microsoft’s cloud and edge computing platform, to market its autonomous automotive solutions.
Statements From Both Sides
“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,” Cruise CEO Dan Ammann said in a statement.
GM said it would work with Microsoft “as its leading cloud-based provider to accelerate its software installation, including integration, storage, artificial intelligence and machine learning capabilities.” In addition, the Detroit automaker will explore opportunities with Microsoft to streamline operations across all its digital supply chains and deliver new mobile services to customers faster.
In a statement, GM CEO Mary Barra called Microsoft a “good addition” to helping automakers with cloud computing as it spends $ 27 billion on electric and private cars by 2025, including 30 new EVs.
Synopsis
Microsoft has entered into a long-term strategic partnership with GM and Cruise to accelerate the sale of self-driving cars.
It joins GM, Honda Motor and other institutional investors in a combined new investment of more than $ 2 billion in Cruise.
