Microsoft has entered into a business partnership to do with driverless vehicles. What is this partnership all about?
Equity partnerships have for ages been key drivers of business development and expansion plans by business entities.
Self-driving car maker Cruise and majority shareholder General Motors have announced that they would partner with Microsoft to accelerate the commercialisation of driverless vehicles.
Cruise will partner Microsoft to use its cloud computing platform and rely on its expertise in digitisation initiatives. These digitisations efforts will include the use of artificial intelligence to roll out its expansion plans. Microsoft will in exchange take an equity stake in Cruise.
Microsoft is joining automotive industry heavyweights such as General Motors, Honda and other institutional investors in a combined new equity investment of more than $2 billion, making Cruise market evaluation to reach $30 billion.
Cruise shares went up by 10% following the news hitting a post-bankruptcy record high.