In 2016, General Motors acquired Cruise , a start-up specializing in the development of autonomous vehicles . And as you know, the biggest competitor in this very promising market is none other than Tesla, Microsoft apparently wants to stay in the race. Recently, the company founded by Bill Gates therefore decided to invest $ 2 billion in the start-up Cruise.
After the news of this colossal investment , GM shares immediately took on the plumpness. Which is quite understandable given all the benefits that this investment will bring. For your information, Microsoft is now joining the long list of investors who support and trust Cruise.
This news comes after a particularly difficult 2020 for Cruise due to the Sars-CoV-2 pandemic. But after this investment by Microsoft, the valuation of the box currently stands at $ 30 billion .
Since its inception, investments of this kind have been Cruise's business
Following this $ 2 billion investment from Microsoft, Cruise is now on a level playing field with its rival Waymo in the autonomous vehicle sector. This is also the business of Microsoft, which wants to stay in the race.
Microsoft CEO Satya Nadella also pointed out that Cruise and GM will now be able to take full advantage of Microsoft's Azure cloud computing technology to perfect their self-driving cars.
As a reminder, in 2018, after Softbank Vision Fund, an investment fund specializing in the field of technology, also invested $ 2.25 billion. Which brought Cruise's valuation to $ 11.5 billion. A second investment made by the same company in 2019 increased its value to $ 19 billion.
And after Microsoft's recent investment, Cruise's value is now estimated at $ 30 billion. This also increased the value of its shares by at least 9.5% in the process .
An investment that will help Cruise to recover from the previous year
As noted, for Cruise, the year 2020 was far from satisfactory due to COVID-19. The start-up was indeed forced to put the testing of its autonomous cars on hiatus. However, that did not stop him from continuing to move forward.
Indeed, by delivering food to San Francisco through its autonomous vehicles (which still have a replacement driver), the firm was able to resume its tests.
And now, especially thanks to the impressive investment from Microsoft, Cruise will only be able to go up the slope. This investment will allow, among other things, the rapid development of Origin , an autonomous car that Cruise introduced last year.