Microsoft Corporation (NASDAQ: MSFT) has just reported having “entered into a long-term strategic relationship” with the North American automotive giant General Motors (GM). The latter is very active in the electric car market, and is currently focused on the autonomous electric car development Cruise LLC, where GM is a majority partner.
The software company founded by Bill Gates made a substantial investment in Cruise LLC, taking advantage of the round of financing valued at 2 million dollars. This will give Cruise a valuation close to $30 billion.
For the CEO of Cruise, the incorporation of Microsoft represents a “gold standard in the reliable democratization of technology; it will be a force multiplier for us as we commercialize our fleet of autonomous, fully electric and shared vehicles”.
Microsoft collaborates with General Motors offering its public cloud to accelerate the digitization initiatives of the American manufacturer‘s collaboration extends to storage, artificial intelligence, and machine learning capabilities.
In the future, Microsoft plans to work with GM “to streamline operations across all digital supply chains, boost productivity, and bring new mobility services to customers faster.”
This alliance is strategic for Microsoft as it enables it to “unlock the potential of cloud computing for autonomous vehicles, Cruise will leverage Azure, Microsoft’s cloud and edge computing platform, to commercialize its unique autonomous vehicle solutions at scale. . Microsoft, as Cruise’s preferred cloud provider, will also leverage Cruise’s deep industry experience to enhance its customer-driven product innovation and serve transportation companies around the world through continued investment in Azure.”
The fusion between the automotive industry journey and the new generation of tech companies is accelerating with the arrival of the digital, autonomous, and shared car. The new mobility offers a key field of experimentation and development to lead traditional automotive companies towards full integration with the new market trends in the 21st century.
This move is strategic on the part of General Motors. This company is immersed in a deep restructuring that ensures its survival in the market, thanks to a significant commitment to electric and autonomous cars.
The modernization plan plans to spend 22.2 billion euros in the development of more than 25 models that will reach different markets around the world until 2025.