Japanese company investing $2.25 billion in GM autonomous car unit

Posted at 7:43 AM, May 31, 2018
and last updated 2018-05-31 08:52:46-04

The Japanese technology conglomerate SoftBank will spend $2.25 billion for a nearly a 20 percent stake in General Motors' autonomous vehicle unit.

GM said Thursday that it will also sink another $1.1 billion into its GM Cruise automated division. The capital infusion is designed to speed large-scale deployment of self-driving robotaxis next year.

The move widens the SoftBank Vision Fund's influence in ride-hailing services. The fund closed a deal in January to spend about $9 billion for a 15 percent stake in Uber.

GM Cruise would remain a wholly owned subsidiary of GM with the automaker holding roughly 80 percent of the business.

GM has announced plans to carry passengers in self-driving cars that won't have a backup driver in 2019.