microsoft invests in cruise in new $2 billion round

Cruise has secured $2 billion in a recent funding round, elevating the company’s valuation to $30 billion and welcoming Microsoft as both an investor and strategic collaborator.
In addition to Microsoft, GM, Honda, and various other institutional investors have further invested in Cruise as the autonomous vehicle developer progresses toward the commercial deployment of its technology.
The alliance with Microsoft may prove as significant, if not more so, than the financial investment for Cruise, according to both organizations. As part of this extensive, long-term collaboration, Cruise will utilize Azure, Microsoft’s cloud and edge computing solution, to power its forthcoming autonomous vehicle ride-hailing service.
A powerful cloud computing infrastructure is essential for any autonomous vehicle company preparing for commercial operations – that is, making their technology widely available to the public. Managing fleets of self-driving vehicles designed to transport passengers and cargo produces a substantial volume of data, positioning cloud services as a major operational expense for AV companies.
This collaboration is designed to deliver advantages for both Cruise and Microsoft. Cruise will gain access to more competitive pricing for cloud services, while Microsoft will have a platform to evaluate and refine its advanced systems capable of managing the demanding workloads associated with machine learning, robotics, and, specifically, large-scale autonomous vehicle deployment.
“Breakthroughs in digital technology are reshaping all facets of our professional and personal lives, including the movement of people and products,” stated Microsoft CEO Satya Nadella. “As the chosen cloud provider for Cruise and GM, we will leverage the capabilities of Azure to facilitate their expansion and bring autonomous transportation into the mainstream.”
The scope of the partnership also includes GM, as detailed in Tuesday’s announcement. Microsoft will serve as GM’s primary public cloud provider, assisting the automaker in accelerating its digital transformation efforts and optimizing operations throughout its digital supply network.
This partnership will not only expedite the commercial launch of Cruise’s fully-electric, self-driving vehicles, but also enable “GM to unlock even greater advantages from cloud computing as we introduce 30 new electric vehicles worldwide by 2025 and develop innovative businesses and services to fuel expansion,” explained GM Chairman and CEO Mary Barra.