SoftBank Vision Fund investing $2.25 billion in GM Cruise to strengthen GM's plans of commercializing autonomous vehicle technology at large scale

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The SoftBank Vision Fund will invest $2.25 billion in GM Cruise Holdings LLC (GM Cruise).

The investment, according to GM, will strengthen GM’s plans to commercialize autonomous vehicle technology at large scale.

“Our Cruise and GM teams together have made tremendous progress over the last two years,” says GM Chairman and CEO Mary Barra.

“Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion.”

The SoftBank Vision Fund investment will reportedly be made in “two tranches.” The first tranche of $900 million will be invested at the closing of the transaction. The second tranche of $1.35 billion will be completed when GM’s Cruise AVs are ready for commercial deployment. That investment will be subject to regulatory approval.

In addition to the investment by SoftBank, GM will also invest $1.1 billion in GM Cruise upon closing of the transaction.

The investment by SoftBank will result in the SoftBank Vision Fund owning a 19.6 percent equity stake in GM Cruise, and will also provide GM with “increased flexibility with respect to capital allocation.”  

“GM has made significant progress toward realizing the dream of completely automated driving to dramatically reduce fatalities, emissions and congestion,” says Michael Ronen, managing partner, SoftBank Investment Advisers.

“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.”

The GM and SoftBank Vision Fund investments are expected to provide the capital needed to reach commercialization at scale beginning next year.