Microsoft to Book $800 Million from GM Self-Driving Hit

General Motors will abandon its Cruise self-driving taxi business, Microsoft revealed. The software giant will take an $800 million hit it intends to book in the current calendar quarter.

Microsoft explained in an SEC filing that a minority stake it took in Cruise in 2021 meant that GM’s decision to ditch the project would hit it in the pocket. The company intends to book an impairment charge in its fiscal 2Q25, which aligns with the current calendar period. “This charge will be recorded in other income and expense and was not included in our second quarter guidance,” Microsoft stated. The move will result in an estimated negative impact of approximately $0.09 in diluted EPS.

GM detailed its plan to ditch its majority-owned self-driving taxi business on 10 December, though explained it was not abandoning its autonomous vehicle ambitions, instead plotting to combine Cruise teams with other relevant internal staff. Mary Barra, chair and CEO of GM, said the deeper integration of its autonomous personnel would contribute to broader assisted driving ambitions and technologies. The automotive giant pumped more than $10 billion into Cruise since 2016. Microsoft’s investment formed part of a more than $2 billion injection by several companies, one of which was Honda.