Microsoft Sees $800 Million Charge on Stake in GM’s Cruise
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Microsoft Corp. plans to take an $800 million charge after General Motors Co. said it was shutting down its autonomous taxi initiative.
GM this week said it will no longer fund the operation, Cruise, citing the high costs to develop the technology and build out a fleet of vehicles.
Microsoft had announced a minority investment in Cruise in January 2021, part of a $2 billion investment round in the self-driving car startup, which is majority-owned by GM. The move gave the Redmond, Wash.-based software maker a stake in the nascent market for connected-car services, an arena that rival Alphabet Inc.’s Google had direct exposure to through its Waymo unit.
Microsoft’s $800 million charge will have a negative impact of about 9 cents a share, the company said in a regulatory filing Dec. 11.
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