Cruise, the self-driving subsidiary of GM, has tapped a $5 billion line of credit from the automaker’s financial arm to pay for hundreds of purpose-built electric and autonomous Origin vehicles as they start to roll off the assembly line.
The access to the credit provided by GM Financial will push Cruise’s “total war chest” to more than $10 billion as it prepares for commercialization, CEO Dan Ammann wrote in a blog post Tuesday.
Walmart is investing in self-driving startup Cruise as part of a massive $2.75 billion investment round in the company—an expansion of the $2 billion round announced in January. That original announcement featured three other big names: GM, Honda, and Microsoft.
Cruise was originally an independent startup but was acquired by GM in 2016. GM has poured billions into the company and has increasingly sought additional financial support from outside investors.
U.S. retailer Walmart and autonomous vehicle company Cruise are pairing up to test grocery delivery in Scottsdale, Arizona.
Under the pilot program, customers will be able to place an order from their local Walmart store and have it delivered via one of Cruise’s autonomous, electric Chevy Bolt cars. While the vehicles will operate autonomously, a human safety operator will always be behind the wheel.
Cruise recently received a permit to transport passengers in its autonomous vehicles in California. Granted by the California Public Utilities Commission, the permit is part of the state’s Autonomous Vehicle Passenger Service pilot.
As part of the program, Cruise must provide data and reports to the CPUC regarding any incidents, the number of passenger miles traveled and passenger safety protocols. Cruise must also have a safety driver behind the wheel and not charge passengers for rides.
Cruise is now one of five self-driving companies allowed to participate in this program. The others are Zoox, Waymo, Pony.ai, Aurora and AutoX. This program is a bit different from the one run by the California Department of Motor Vehicles, which has granted 66 companies permits to test their respective vehicles in the state.
GM Cruise has raised another $1.15 billion in new equity from a group of investors that includes T. Rowe Price Associates, Honda, SoftBank Vision Fund and its parent company GM, as the self-driving vehicle company pushes to launch a commercial autonomous ride-hailing service this year.
This investment increases Cruise’s post-money valuation to $19 billion, inclusive of SoftBank’s previously announced investment commitment. Cruise has secured capital commitments totaling $7.25 billion in the past year, according to the company.
Honda will commit $2.75 billion as part of an exclusive agreement with GM and its self-driving technology subsidiary Cruise to develop and produce a new kind of autonomous vehicle
General Motors today announced a large investment into its self-driving unit, Cruise. SoftBank’s Vision Fund will invest $2.25 billion in GM Cruise Holdings LLC and when the deal closes, GM will invest an additional $1.1 billion. The investments are expected to inject enough capital into Cruise for the unit to reach commercialization at scale beginning in 2019.
General Motors this morning announced that it will acquire Cruise Automation, a San Francisco-based developer of autonomous vehicle technology. No financial terms were disclosed, but Fortune has learned from a source close to the situation that the deal is valued at “north of $1 billion,” in a combination of cash and stock.