General Motors is getting a $2.25 bn investment from SoftBank Vision Fund for its autonomous vehicle car division, GM Cruise, the automaker said in a release Thursday.
Japanese tech investor SoftBank will put $2.25 bn in GM Cruise Holdings and GM will invest $1.1 bn, General Motors pledged to put self-driving vehicles to the market in 2019. Softbank will invest $2.25 bn in General Motors’ efforts.
GM announced it is also investing $1.1 bn in the joint effort. CEO Mary Barra said the investment will allow GM to launch autonomous vehicles next year.
Earlier, SoftBank heavily invested in Uber, a hugely popular ride-hailing application firm. GM is known to be in partnership with Uber’s rival, Lyft.
Softbank will invest $900 mn now, and the additional $1.35 bn when GM’s autonomous vehicles are ready for commercial deployment. Softbank will own around 20% of the joint venture with GM.
On the news, GM’s stock soared 7.5% to $40.77 in pre-market trading.