May 31, 2018

SoftBank investing $2.25 billion into GM's self-driving program

Dan Primack

Photo by Bill Pugliano/Getty Images

General Motors on Thursday announced that SoftBank Vision Fund will invest $2.25 billion into its self-driving program, with plans to commercialize such vehicles next year.

Bigger picture: This is a super-charging of Cruise, a self-driving startup that GM bought for nearly $1 billion in 2016. It's also further complicates the self-driving and ride-share web, as GM is a major investor in Lyft while SoftBank is a major investor in Uber.

  • GM will also invest an additional $1.1 billion into the Cruise program.
  • SoftBank's investment is split into two parts: $900 million upfront, and the other $1.35 billion after commercialization. Once complete, SoftBank would hold a 19.6% stake in GM Cruise.
  • SoftBank did explore investing in other auto OEMs during its due diligence process, but believed GM offered superior scale and speed to market.
  • The deal does not have exclusivity for either side, but both have agreed to a 7-year hold period before seeking liquidity.
  • GM declined to give a specific time in 2019 for commercialization, nor specific markets.
  • When asked about ride-hail networks, GM exec Dan Ammann said that SoftBank's various relationships give the automaker "enhanced flexibility." That might send a chill through Lyft.

Go deeper

Axios

Coronavirus spreads to more countries, and U.S. ups its case count

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The novel coronavirus continues to spread to more nations, and the U.S. reports a doubling of its confirmed cases to 34 — while noting those are mostly due to repatriated citizens, emphasizing there's no "community spread" yet in the U.S. Meanwhile, Italy reported its first virus-related death on Friday.

The big picture: COVID-19 has now killed at least 2,359 people and infected more than 77,000 others, mostly in mainland China. New countries to announce infections recently include Israel, Lebanon and Iran.

Go deeperArrowUpdated 3 hours ago - Health
Axios

Axios Dashboard

Keep up with breaking news throughout the day — sign up for our alerts.

Keep ReadingArrowUpdated 4 hours ago - Politics & Policy
Orion Rummler

Wells Fargo agrees to pay $3 billion to settle consumer abuse charges

Clients use an ATM at a Wells Fargo Bank in Los Angeles, Calif. Photo: Ronen Tivony/SOPA Images/LightRocket via Getty Images

Wells Fargo agreed to a pay a combined $3 billion to the Justice Department and the Securities and Exchange Commission on Friday for opening millions of fake customer accounts between 2002 and 2016, the SEC said in a press release.

The big picture: The fine "is among the largest corporate penalties reached during the Trump administration," the Washington Post reports.

Go deeperArrow5 hours ago - Economy & Business