General Motors Co. shares spiked in early New York trading after the automaker announced that SoftBank Vision Fund will invest $2.25 billion in its self-driving unit, GM Cruise Holdings LLC.
As a result of the investment, SoftBank Vision Fund will hold a 19.6% equity stake in GM Cruise.
Shares in General Motors were up 9.66% at $41.48 as of 11:20 a.m. ET.
The SoftBank investment will be made in two tranches, with an initial payment of $900 million to be delivered when the transaction closes. Another $1.35 billion investment will be made once Cruise's autonomous vehicles are ready for commercial deployment.
General Motors said it will also invest $1.1 billion in GM Cruise upon closing of the transaction.
"Our Cruise and GM teams together have made tremendous progress over the last two years," GM Chairman and CEO Mary Barra said in a statement. "Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion."
