GM acquires self-driving car technology company Cruise Automation

Robotics has its first unicorn, suggested Robohub, a non-profit platform bringing together experts in roboticsresearch, start-ups, business, and education from around the globe, referencing GM’s purchase of driverless car technology company Cruise Automation.

A developer of an ‘after-market’ kit that makes vehicles self-driving, Cruise Automation was purchased by GM for $1B US, according to Fortune. The San Francisco-based company previously raised more than $18 million in venture funding, on a post-money $90 million valuation.

Founded in 2013, Cruise had been testing its technology on the streets of San Francisco. Cruise will operate as an independent unit within GM’s recently formed Autonomous Vehicles Development Team, led by Doug Parks, GM vice president of autonomous technology and vehicle execution, and will stay in San Francisco.

"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. "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," according to Mark Reuss, GM executive vice president, Global Product Development, Purchasing and Supply Chain, "provides our company with a unique technology advantage that is unmatched in our industry. We intend to invest significantly to further grow the talent base and capabilities already established by the Cruise team."

Since the beginning of 2015, GM also entered into a strategic alliance with ride-sharing company Lyft; formed Maven, its personal mobility brand for car-sharing fleets in many U.S. cities, and established a separate unit for autonomous vehicle development.

To put this deal into perspective, Robohub notes that in 2014,Silicon Valley Robotics announced that over $1 billion had been invested in robotics in the last 5 years, 2009 to 2014. Last year, over $1 billion was invested in robotics in a 12 month period, and with this deal, $1 billion has been invested into one single company.

Pictured: General Motors President Dan Ammann (right) with Cruise Automation co-founders Kyle Vogt (center) and Daniel Kan (left). Image credit: © General Motors

View theGM press release.
View the Robohub article.

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