GM's self-driving car unit to get SoftBank push with $2.25-bn investment

Japan's SoftBank Group Corp will invest $2.25 billion in General Motors Co's autonomous vehicle unit Cruise, the companies said on Thursday, a deal that validates the venerable Detroit automaker's leadership in self-driving cars and sent GM shares up nearly 13 per cent.

The move by SoftBank's $100-billion Vision Fund is one of the highest profile, largest investments to date in self-driving technology, an industry that could revolutionize transportation but faces engineering, safety and regulatory challenges, as well as scepticism among potential users.

SoftBank has made a string of large bets in so-called mobility companies, such as ride services provider Uber Technologies Inc , expecting that transportation services for people and goods will explode. The Cruise deal extends that wager, betting that computers will displace drivers and cut operating costs.

GM Chief Executive Officer Mary Barra said GM might explore "other opportunities" with some of the companies that SoftBank has funded, including Uber, China's Didi, India's Ola and Southeast Asia's Grab.