US approves $2.25bn SoftBank investment in GM-backed self-driving startup

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US approves $2.25bn SoftBank investment in GM-backed self-driving startup

On Friday, the 5th of July 2019, a GM-owned US self-driving startup, Cruise, had told that a US national security panel had approved an investment of $2.25 billion from Japanese conglomerate, SoftBank Corp., which had also been holding stakes in ride-hailing pioneer Uber and another ride-sharing start-up, Lyft Inc.

In point of fact, over the recent weeks Japan’s SoftBank Corp. had been facing off steep scrutiny from US regulators on its tie-up with multiple Chinese technology firms amid a staggering Sino-US trade war that had already drained trillions from global financial markets.

Nonetheless, latest Softbank’s investment on another US firm was brought into light on last Friday (July 5th), while the investment mogul had been well-poised to raise funds for its second $100 billion investment instrument, called as Vision fund.

Aside from that, a source with direct knowledge regarding the issue added on Friday (July 5th) that the Committee on Foreign Investment in the United States (CFIUS), which oversees deals that could unleash potential national security concerns, approved the Japanese Investment after receiving assurance that technology of General Motor-owned Cruise would not leave the borders of United States.

Expressing an out-and-out optimism on deploying its technology at a massive scale, Cruise CEO Dan Ammann said in Friday’s (July 5th) statement, “Today’s news is another important step toward achieving our goal to develop and deploy self-driving vehicles at massive scale”.