After announcing a “long-term strategic relationship” with Microsoft (MSFT), shares of the Detroit-based automotive company General Motors (GM) rose by over 9%. The collaboration will mainly regard GM’s autonomous driving start-up “Cruise”.
The partnership revolves around Microsoft's cloud-based computing platform Azure, which will become the default system for GM and Cruise with further utilization for Cruise’s self-driving taxis. Moreover, Azure will implement Cruise’s industry knowledge in their product development.
Cruise is currently valued at around $30 billion after a new investment round of $2 billion from Microsoft, GM, Honda together with undisclosed institutional investors.
GM’s quick push toward electric and autonomous driving has so far paid off, as the American large-cap soared by over 31% this year already and outperformed the leading EV companies Tesla and Nio by more than 10% YTD.