Japanese-owned SoftBank Group Corp. will invest $2.25 billion in General Motors’ autonomous vehicle technology, the car manufacturer announced on Thursday.
SoftBank will provide the money in two installments through its Vision Fund, an investment program focused on the technology sector. The first transfer of $900 million will come at the close of transaction and the second is expected to come when GM’s Cruise AV, the Detroit-based company’s self-driving car, is ready for commercial deployment.
GM will also invest $1.1 billion once the transaction closes. The full transfer would give SoftBank a 19.6 percent stake in GM Cruise. The news lifted GM’s stock 7.5 percent in premarket trading, to $40.69.
“Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion,” Chief Executive Officer Mary Barra said in a statement.
[Related: Elon Musk blames ‘misleading’ media for publicizing self-driving car deaths]
