SoftBank Vision Fund will invest $2.25 billion in GM Cruise Holdings LLC (GM Cruise), further strengthening the company’s plans to commercialize autonomous vehicle (AV) technology at large scale. GM will also invest $1.1 billion in GM Cruise upon closing of the transaction. The investments value GM Cruise at $11.5 billion.
GM has made significant progress toward realizing the dream of completely automated driving to dramatically reduce fatalities, emissions and congestion. The GM Cruise approach of a fully integrated hardware and software stack gives it a unique competitive advantage. We are very impressed by the advances made by the Cruise and GM teams, and are thrilled to help them lead a historic transformation of the automobile industry.—Michael Ronen, managing partner, SoftBank Investment Advisers
The SoftBank Vision Fund investment will be made in two tranches. At the closing of the transaction, the Vision Fund will invest the first tranche of $900 million. At the time that Cruise AVs are ready for commercial deployment, the Vision Fund will complete the second tranche of $1.35 billion, subject to regulatory approval.
General Motors President Dan Ammann (left) and GM Chairman and CEO Mary Barra (right) give SoftBank Investment Advisers Managing Partner Michael Ronen a closer look at the Cruise AV on 30 May 2018 in Detroit, Michigan. (Photo by Steve Fecht for General Motors)
Together, this will result in the SoftBank Vision Fund owning a 19.6% equity stake in GM Cruise and will afford GM increased flexibility with respect to capital allocation.
The GM and SoftBank Vision Fund investments are expected to provide the capital necessary to reach commercialization at scale beginning in 2019.