General Motors announced Friday that it is buying Silicon Valley software startup Cruise Automation in an effort to bolster its autonomous vehicle development repertoire.
GM Spokesperson Kevin Kelly said in phone interview with Product Design & Development that Cruise, Lyft and Maven—two other additions to GM’s operations made this year—are
“the perfect pieces of the puzzle” needed to “win in the mobility space.”
Kelly declined to divulge any more specifics pertaining to the agreement. However, Fortune reports that a source close to the deal told the publication that the deal is worth “north of $1 billion” in cash and stocks.
Cruise Automation, which has been creating and testing autonomous vehicle technology since its inception in 2013, will be a self-reliant division of GM’s Autonomous Vehicle Development Team once the acquisition is completed in GM’s second quarter. Cruise will continue to operate in San Francisco so that it can aggressively hire workers in the area, according to Kelly. He said GM will then provide Cruise with engineering and other resources it needs to succeed.
“GM’s commitment to autonomous vehicles is inspiring, deliberate, and completely in line with our vision to make transportation safer and more accessible,” said Kyle Vogt, founder of Cruise Automation, in a statement released by GM. “We are excited to be partnering with GM and believe this is a ground-breaking and necessary step toward rapidly commercializing autonomous vehicle technology.”
“Cruise provides our company with a unique technology advantage that is unmatched in our industry,” said GM Executive V.P. Mark Reuss in the same statement. “We intend to invest significantly to further grow the talent base and capabilities already established by the Cruise team.”
GM didn’t explore the acquisition of any other companies, according to Kelly.
