March 14, 2016—General Motors announced Friday that it will buy self-driving vehicle startup Cruise Automation, according to a report by Reuters News.
Cruise Automation has raised $20 million in venture capital to date since its launch in 2013. GM did not disclose the value of the acquisition, though technology website Re/Code cited sources saying the number was as high as $1 billion.
No specific timeline for the acquisition has been announced.
“We will be committing considerable resources to recruit and grow the capability of the team,” said GM president Dan Ammann.
GM’s goal is to use Cruise Automation to develop its plan to launch autonomous vehicles, possibly to be used in an autonomous, electric, ride-sharing fleet. GM invested $500 million in ride-sharing company Lyft Inc. in January.
