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37°46′12″N 122°24′35″W / 37.7699°N 122.4098°W / 37.7699; -122.4098 Cruise LLC was an American self-driving car company that became a subsidiary of General Motors, headquartered in San Francisco, California. Founded in 2013 by Kyle Vogt and Dan Kan,[4][5][6] Cruise tested and developed autonomous car technology. The company was acquired by General Motors in 2016, and operated as a largely autonomous subsidiary,[7] focusing on producing a fleet of driverless taxis.[8] Following a series of incidents, it suspended operations in October 2023, and Kyle Vogt resigned as CEO in November 2023.[9] The company began returning its vehicles to public roads in May 2024.[10]

Key Information

In December 2024, GM stopped funding Cruise. Work on autonomous vehicles was to be incorporated into development of advanced driver assistance systems for personal vehicles, no longer funding autonomous taxis.[11][8]

History

[edit]

Cruise initially focused on developing direct-to-consumer kits to retrofit vehicles with limited self-driving capabilities.[12] The earlier generation of Cruise technology, RP-1, offered an autonomous on-demand feature available for the Audi A4 or S4 (2012 or later). The $10,000 kit will eventually retrofit all vehicles into a highway autopilot system. Ultimately, Cruise determined that the greater challenge lay in conquering city driving. In January 2014, the company decided to abandon the RP-1 and produce a fully autonomous vehicle using the Nissan Leaf. In 2015, Cruise changed its strategy and began writing software for fully self-driving vehicles.[12] The brand philosophy urges car owners to engage in shared ownership instead of individual ownership to reduce environmental damage, the number of accidents, and congestion in big cities.[13]

Cruise received a permit to test self-driving vehicle technology from the California Department of Motor Vehicles in June 2015.[14] After it successfully graduated from Y Combinator, a startup accelerator that mentors up-and-coming entrepreneurs, Cruise was acquired by General Motors in March 2016.[15] The amount was undisclosed, and reports have estimated the number from "north of $500 million",[16] to $580 million[17] to over $1 billion.[15] Cruise forms the core of GM's self-driving efforts.[18]

Upon acquisition, Cruise had around 40 employees.[12] In a September 2016 interview with Darrell Etherington at the San Francisco TechCrunch Disrupt conference, Vogt confirmed that the company had over 100 employees.[19] The number of people employed by Cruise has not generally been known, but multiple outlets reported that Cruise continued to grow rapidly. In June 2017, GM CEO Mary Barra said that Cruise had close to 200 employees.[20]

Acquisition by GM and investments

[edit]

Industry observers have noted, and GM CEO Mary Barra has stated, that GM allowed Cruise to remain responsible for both technology and commercialization, giving Cruise independence to avoid the pitfalls common when a large company acquires a technology startup.[7]

Since becoming part of General Motors in March 2016,[21] Cruise has been working on developing software and hardware to make fully autonomous vehicles using modified Chevrolet Bolts.

In April 2017, GM announced plans to invest $14 million to expand Cruise operations in California, adding an estimated 1,163 full-time employees by 2021.[22][16]

In May 2018, Cruise announced that SoftBank Vision Fund would invest $2.25 billion into the company, along with another $1.1 billion from GM itself.[23] In October 2018, Cruise announced that Honda would be investing $750 million into the company, followed by another $2 billion over the next 12 years.[24]

In November 2018, the company got a new CEO, Dan Ammann, who had been a president of GM before accepting this position.[25] Cruise raised an additional $1.15 billion in new equity in May 2019, bringing its total valuation to $19 billion.[26][27]

In January 2021 Microsoft, Honda and institutional investors invested a further $2 billion in combined new equity bringing the valuation to $30 billion.[28] In March 2021, Cruise acquired Voyage, a self-driving startup that had been spun off from Udacity.[29]

In March 2022, GM acquired Softbank Vision Fund 1's equity ownership in Cruise for $2.1 billion, and made an additional $1.35 billion investment in Cruise.[30]

Robotaxi testing and permits

[edit]

In September 2021, Cruise received a permit from the California Department of Motor Vehicles to provide driverless taxi rides in the state. The permit allows the company to provide the service without the inclusion of safety drivers - staff that would accompany the vehicle and take control of it if necessary.[31] In November 2021, Cruise co-founder Kyle Vogt took the first driverless taxi drive in the company's history.[32]

In February 2022, Cruise announced that it is now open to the public.[33][34] Also in February 2022, Cruise petitioned U.S. regulators (NHTSA) for permission to build and deploy a self-driving vehicle without human controls.[35] At the end of the month, Kyle Vogt was officially named CEO.[36]

In June 2022, Cruise received California's first Driverless Deployment Permit, allowing it to charge fees for its service.[37] This was the first company to offer rides without a driver in a major public city. The company recalled and updated software in 80 self-driving vehicles in August, following a crash in June.[38] As of September 2022, the company operated 100 robotaxis in San Francisco, and announced their intentions to increase the size of their fleet to 5,000. However, this drew some criticism due to the potential for this to increase traffic within the city.[39]

In September 2022, the company announced it would expand its service to Phoenix, Arizona, and Austin, Texas, within three months, with the goal of adding $1 billion in revenue by 2025.[40] The Verge reported that the company lost $561 million in Q1 2023, with most of the $30 million in revenue coming from interest and other non-operating sources of income, but said it remains on the path to reach $1 billion in revenue by 2025 and $50 billion by 2030. The article noted Cruise CEO Kyle Vogt said a small portion of the company's fleet offered driverless rides 24 hours a day across the entire city of San Francisco.[41]

Suspension of operations and eventual shut down

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Cruise charging and storage facility in San Francisco (Nov 2023)

In October 2023, following a barrage of safety concerns and incidents since Cruise received approval in August 2023 for round-the-clock robotaxi service in San Francisco,[42] the California DMV suspended Cruise's self-driving car permits following an investigation of a pedestrian collision, effective immediately.[43] Three days later, Cruise announced it would temporarily halt robotaxi operations nationwide.[44] Outside of California, the voluntary nationwide scope expansion suspended services in Arizona (Phoenix), Texas (Austin, Dallas, and Houston), and Florida (Miami).[45]

On November 8, Cruise announced a recall of 950 autonomous vehicles, to be implemented by an over-the-air software update, as a result of the pedestrian collision.[46] The next day, Cruise announced it had laid off an unspecified number of contingent workers who had supported autonomous vehicle operations; at the time, Cruise had an estimated 4,000 full-time employees.[47]

On November 19, CEO Kyle Vogt announced his resignation from Cruise in the wake of the suspension.[9] GM appointed Mo Elshenawy, Cruise’s executive vice president of engineering, and Craig Glidden, GM's General Counsel, as co-presidents.[48]

A subsequent internal investigation conducted by Quinn Emanuel Urquhart & Sullivan and released in January 2024 concluded that the DMV's suspension of Cruise's operations was largely the result of deficient leadership at Cruise. At that time, the company remained under investigation by the U.S. Department of Justice and the U.S. Securities and Exchange Commission.[49]

On June 25, 2024, the company announced Marc Whitten, a former Amazon and Microsoft executive, as its new CEO.[50]

In December 2024, GM stopped funding Cruise. Work on autonomous vehicles was to be incorporated into development of advanced driver assistance systems for personal vehicles, no longer funding autonomous taxis.[8] The restructuring process is planned to be completed by mid-2025.[51]

In February 2025, the merger of Cruise into GM was completed, with plans to develop technology for personal vehicles rather than robotaxis. GM also announced that it would integrate Cruise technology the Super Cruise system.[52]

Products

[edit]

Cruise RP-1

[edit]

The first product offered by Cruise, before acquisition by GM, was the RP-1, announced in June 2014 as a kit to be available in 2015. The RP-1 was priced at US$10,000, including installation, and was intended to be retrofitted to 2012 and newer Audi A4 and S4 cars. The RP-1 package included a roof-mounted "sensor pod" with cameras, radar, GPS, inertial sensors, and an on-board computer linked to steering, throttle, and brake actuators. Once activated on a limited-access highway, the RP-1 would maintain speed and following distance and keep the car within its lane. Pre-orders were limited to 50 units via a US$1,000 reservation/deposit fee.[53] However, Cruise shifted its strategy in 2015 to focus on the creation of a fully autonomous vehicle platform rather than a retrofit kit, and never released the RP-1.[54][55]

Cruise initially purchased Nissan Leaf battery-electric vehicles to test automated driving systems,[56] but these were not tested after December 2016.[57]

Cruise AV

[edit]
Main article: Chevrolet Bolt § Cruise AV (autonomous vehicle)
A G3 Cruise AV based on the Chevrolet Bolt undergoing testing in San Francisco. The vehicle is equipped with numerous Velodyne LiDAR sensors.

The Cruise AV is a Chevy Bolt-based autonomous vehicle; the first generation (G1) were modified by Cruise in San Francisco while the subsequent second and third generations (G2 and G3) are manufactured at the Orion Township assembly plant in Michigan. The Cruise AVs feature "drive control algorithms and artificial intelligence created by Cruise."[58] The Cruise AV uses Lidar, radar, and camera sensors; according to Cruise, 40% of its hardware is unique to self-driving.[59]

In 2016, Cruise was conducting testing with a fleet of approximately 30 self-driving G1 Cruise AVs.[60] By June 2017, GM and Cruise had produced an estimated 180 G1 and G2 Cruise AV self-driving vehicles after GM announced the mass production of 130 new G2 Cruise AVs.[61]

In 2017, Cruise was conducting testing on public roads with Cruise AVs in San Francisco, Scottsdale, Arizona, and the metropolitan Detroit area. In early 2017, Cruise released a series of videos showing its self-driving vehicles navigating the streets of San Francisco.[62] In an interview with Fortune in July 2017, Vogt described the videos as "the most technically advanced demonstrations of self-driving cars that have ever been put out there in public."[63] Also in July 2017, Cruise announced "Cruise Anywhere," a program for San Francisco-based employees to use self-driving cars as a rideshare service.

In October 2020, the California Department of Motor Vehicles granted a permit to Cruise for testing fully driverless vehicles.[64] Cruise began testing Cruise AVs without a human safety driver present on the streets of San Francisco in December 2020.[65] In September 2021, Honda started testing program toward launch of Level 4 mobility service Business in Japan, using the G3 Cruise AV.[66]

Cruise Origin

[edit]

In January 2020, the company exhibited the Cruise Origin, a Level 4–5 driverless vehicle,[67] intended to be used for a ride hailing service.[68] The Origin is purpose-built as a self-driving vehicle, rather than retrofitted from a non-autonomous vehicle, and contains no manual steering controls.[69] Costing approximately $50,000 to manufacture at scale,[70] the vehicle is all-electric and designed to have a lifespan of 1,000,000 miles (1,600,000 km).[71] Cruise announced that future Origin vehicles would be manufactured at GM's Detroit-Hamtramck plant.[72][73] It is built on the GM BEV3 platform using Ultium battery technology.[74]

In January 2021, Honda announced a partnership with Cruise to bring the Origin to Japan as part of Honda's future Mobility as a Service (MaaS) business.[75] By September 2022, a prototype of the Japanese version of the Cruise Origin for Tokyo was completed and started testing.[76]

In May 2021, Cruise announced they expected mass production of the Origin driverless shuttle would commence in 2023.[77] In June 2021, Cruise announced it had secured a $5 billion line of credit from General Motors to assist with commercialization and that it had begun assembly of 100 pre-production Origin vehicles for validation testing.[78] Prototype Origin vehicles were spotted testing with human operators at GM-owned proving grounds by July 2022.[79]

The State of California issued testing permits to Cruise in June 2021, allowing the company to provide limited revenue taxi service without human drivers.[80] In February 2022, General Motors and Cruise announced they had petitioned NHTSA for permission to build and deploy the Cruise Origin.[81][82] Because the Origin does not have manual controls, the NHTSA must issue an exception to the Federal Motor Vehicle Safety Standards to permit operation on public roads;[83] production was ready to begin by February 2023,[84] pending approval of the exception, which had not been granted by September 2023.[85]

Along with the suspension of Cruise's operations, GM paused production of the Origin in November 2023.[86]

Regulation

[edit]

Cruise received a permit from the California Public Utilities Commission (CPUC) in June 2022, allowing them to operate revenue taxi services in San Francisco using cars without a human driver during limited hours in certain areas of the city.[37] Cruise and Waymo later submitted applications to the CPUC, seeking to expand the commercial operating hours for their robotaxi services in San Francisco. In January 2023, the city of San Francisco wrote to the CPUC, requesting that the applications be denied: "in the months since the Initial Approval [of autonomous taxi services in June 2022], Cruise AVs have made unplanned and unexpected stops in travel lanes, where they obstruct traffic and transit service, and intruding into active emergency response scenes, including fire suppression scenes, creating additional hazardous conditions."[87][88]

Although draft resolutions approving the expansion petitions were posted by the CPUC in May 2023,[89] the hearing was delayed from June 29 to July 13, pending further review.[90] Before the scheduled July 13 hearing was held, a group named Safe Street Rebel published a viral video to social media, showing that an autonomous vehicle could be disabled temporarily without permanent damage by placing a traffic cone on it and vowing to conduct a "Week of Cone" to demonstrate their concerns.[91][92] Cruise released a statement in response: "Intentionally obstructing vehicles gets in the way of [efforts to provide free rides, meal deliveries, and retrieve food waste] and risks creating traffic congestion for local residents."[93]

The CPUC delayed the hearing for the permit expansions again to August 10.[94] At that hearing, the CPUC approved the scope expansion by a 3–1 vote, allowing both Cruise and Waymo to offer robotic taxi services at all hours throughout San Francisco.[95]

On October 24, 2023, the California Department of Motor Vehicles suspended Cruise's permit to test and operate autonomous vehicles without a safety driver.[96] According to the suspension order, during their initial meeting with the California DMV on October 3, Cruise had shown a video captured by the AV's onboard cameras that depicted events up to the first complete stop after the Cruise AV struck the pedestrian; Cruise personnel neither described nor showed the remaining recording of the "pullover maneuver" that happened next, during which the pedestrian was dragged for 20 ft (6.1 m) at 7 mph (11 km/h). After learning about the dragging from another government agency, the DMV requested and received the full recording from Cruise. A spokesperson for Cruise disputed the dragging footage was withheld, saying the complete video was shown multiple times.[97] In its press release, the California DMV stated it had determined "the manufacturer's vehicles are not safe for the public's operation" and added "the conduct of autonomous vehicle testing on public roads by the manufacturer [makes] an unreasonable risk to the public". The suspension is effective immediately and does not have a set expiration; the permit will be reinstated after Cruise completes unspecified required actions.[98] The CPUC also suspended Cruise's permit to provide autonomous revenue taxi services the same day, following the DMV.[99]

In May 2024, Cruise began returning its vehicles to publics roads, although an investigation by the National Highway Traffic Safety Administration (NHTSA) into potential flaws in Cruise vehicles remains pending.[10]

Incidents

[edit]
Interior of Cruise autonomous vehicle in San Francisco

Interference with police and fire services

[edit]

In April 2022, the San Francisco Police Department (SFPD) stopped a Cruise AV for driving at night without its headlights on. The AV was empty, operating without any human safety attendants or passengers. The vehicle pulled over for SFPD ahead of an intersection, then proceeded across the intersection when an officer walked away from it;[100] on the other side of the intersection, the vehicle stopped again and turned on its hazard lights.[101] According to Cruise, the vehicle operated as intended, moving to the "nearest safe location" for the traffic stop in response to direction from Cruise personnel after the SFPD officer was clear of the vehicle.[101]

Also in April 2022, an empty Cruise AV blocked the path of a San Francisco Fire Department (SFFD) truck responding to a fire at approximately 4 AM; the fire truck was unable to pass a garbage truck doubled-parked in the lane by using the lane for oncoming traffic, as the AV was occupying the oncoming lane. The Cruise AV had stopped and yielded to the fire truck, but was unable to pull to the right to clear the oncoming lane because of parked cars.[102] While a human might have reversed to clear the lane, the Cruise AV did not move out of the way of the fire truck. San Francisco city officials filed a report to the CPUC, stating that "this incident slowed SFFD response to a fire that resulted in property damage and personal injuries."[103]

In June 2023, a video was taken of a Cruise car appearing to block police and fire services from responding to a mass shooting in San Francisco. Cruise denied that the car had blocked the road, stating that emergency response vehicles "were able to proceed around our car". The police and fire departments declined to comment.[104] The San Francisco Fire Department reported there had been 39 incidents between January and June 2023 where Cruise and Waymo robotaxis had blocked first responders.[105]

In August 2023, a San Francisco firetruck collided with a Cruise car while responding to an emergency call with lights and sirens active.[106] As a result of the incident, the California Department of Motor Vehicles requested that "Cruise to immediately reduce its active fleet of operating vehicles by 50% until the investigation is complete and Cruise takes appropriate corrective actions to improve road safety".[107]

City of Austin police and fire departments noted 12 "near miss" incidents occurred with Cruise vehicles between July and November 2023; Austin FD requested that Cruise set up an avoidance area around Fire Station 2, and Austin PD noted the vehicles were unable to recognize hand signals that conflicted with traffic signals.[108]

Collisions and blocking traffic

[edit]

On June 3, 2022, a Cruise AV taxi carrying three backseat passengers collided with a Toyota Prius after making an unprotected left turn. According to Cruise, "occupants of both vehicles received medical treatment for allegedly minor injuries". According to GM, the Prius was speeding at the time of the accident and was in the wrong lane. In the aftermath of the incident, Cruise temporarily changed the vehicles' programming to make fewer unprotected left turns.[109]

On June 29, 2022, nearly twenty Cruise AVs blocked traffic for two hours by clustering at the intersection of Gough and Fulton in San Francisco.[110][111] A Cruise employee sent an anonymous letter to the CPUC, asserting that Cruise loses communication with the automated vehicles "with regularity", sometimes requiring a tow truck for recovery.[112] Additional documented occurrences of immobilized Cruise vehicles in 2022 include May 18 (fleet-wide communications loss), June 21 (Tenderloin),[112] and September 22 (two incidents; one near Sacramento and Leavenworth, the other near Geary and Franklin).[113] San Francisco has recorded 28 incidents reported by 9-1-1 involving autonomous vehicle failures between May 29 and September 5, 2022.[114]: 4, 31  In October, US News and World Report reported that Cruise autonomous taxis had blocked traffic in San Francisco on several occasions.[115]

In March 2023, two Cruise AVs operating without passengers drove through a blocked-off intersection in San Francisco, and became entangled with fallen Muni trolleybus power lines.[116] The next day, a passengerless Cruise AV hit the rear end of a Muni bus on Haight Street.[117]

Remote assistance requirement

[edit]

In November 2023, The New York Times reported that on average, according to two people familiar with Cruise's operations, a remote operator had to intervene for every 2+1⁄2 to 5 mi (4.0 to 8.0 km) driven.[118] Vogt confirmed that its vehicles made a call for remote assistance "2–4% of the time on average, in complex urban environments", but clarified that "of those, many are resolved by the AV itself before the human even looks at things". A spokesperson for Cruise added that a call remote assistance is triggered every 4 to 5 mi (6.4 to 8.0 km).[119] Brad Templeton reported that remote assistance did not mean real-time remote operation by a human, citing reporting from Cruise that stated 98% of remote assistance calls connected to a human operator within 3 seconds, and 80% of remote assistance calls were resolved without action by the human operator.[120] Cruise reported an average distance between disengagements of 95,900 mi (154,300 km) in 2022.[121]

Failure to identify obstacles

[edit]

In November 2023, The Intercept reported that Cruise vehicles were unable to consistently recognize and track children and large holes, according to a review of internal safety reports.[122]

Pedestrian injuries

[edit]

In August 2023, a Cruise AV starting to proceed through an intersection at 1.4 mph (2.3 km/h) on a green light struck a pedestrian, who subsequently was transported by ambulance after complaining of knee pain.[123][124]

At approximately 9:30 p.m. (PDT) on October 2, 2023, a pedestrian was struck by a driver traveling south on Fifth Street in San Francisco after crossing the intersection with Market Street. The driver continued without stopping after the pedestrian was tossed over the right side of the car into the adjacent lane, where a Cruise AV nicknamed "Panini", traveling alongside and operating without a safety driver, subsequently also struck and then dragged the pedestrian for approximately 20 ft (6.1 m), coming to a stop with a tire resting on the pedestrian's leg, pinning them beneath the AV. The Jaws of Life were used to free the pedestrian from underneath "Panini". The driver who initially struck the pedestrian fled the scene.[125][126] According to Cruise, the AV had attempted to avoid striking the pedestrian by first swerving to the right, then stopping immediately after a collision had been detected, followed by attempting to pull over to clear the road, but dragging the victim.[127][128] In September 2024, the National Highway Traffic and Safety Administration (NHTSA) fined Cruise $1.5 million for failing to disclose the fact that a pedestrian was seriously injured in the October 2023 incident.[129]

Investigations

[edit]

In December 2022, the NHTSA opened preliminary investigation PE22-014, citing incidents in which the vehicles may have engaged "in inappropriately hard braking or [became] immobilized."[130][131] Three specific incidents of hard braking were described, all involving situations in which the automated driving systems, while operating under human supervision, braked hard in response to another vehicle approaching quickly from behind, causing the other vehicle to crash into the automated car.[130] Two letters were sent to Cruise on January 4, 2023, requesting relevant data.[132][133]

The California DMV opened an investigation in August 2023 following "recent concerning incidents" involving Cruise AVs.[134] The investigation resulted in the immediate suspension of Cruise's permit to test and operate autonomous vehicles, effective October 24, 2023.[135]

In response to two collisions with pedestrians in August and October 2023, the NHTSA opened preliminary investigation PE23-018 on October 16, 2023,[124][136] and identified two other incidents from publicly posted videos where AVs had encroached on pedestrians in or entering roadways.[137]

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Cruise (autonomous vehicle)

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![Cruise_Automation_Bolt_EV_third_generation_in_San_Francisco.jpg][float-right]
Cruise LLC is an American autonomous vehicle technology company founded in 2013 in , , focused on developing software and hardware for self-driving cars. Acquired by in 2016 for about $1 billion, it retrofitted EVs with sensors including , , and cameras to enable driverless operation, initially targeting urban ride-hailing services. Cruise reached key technical milestones, including over 1 million miles of fully driverless operation by early 2023 and regulatory approval for paid driverless rides in ahead of competitors. These efforts involved mapping complex city environments and iterating on autonomy stacks to handle edge cases like interactions and anomalies. However, empirical data revealed persistent challenges, as evidenced by disengagements and minor incidents during testing. A pivotal October 2, 2023, incident in saw a Cruise , after being struck by a human-driven that propelled a into its path, fail to fully detect the situation and subsequently drag the pedestrian 20 feet while attempting to pull over, resulting in severe injuries. This event triggered a nationwide suspension of driverless operations, multiple NHTSA probes into systemic issues like poor post-impact, and findings of incomplete crash reporting to regulators, including omission of the dragging detail in initial disclosures. Cruise admitted to submitting misleading reports and agreed to a $500,000 penalty, highlighting causal factors in software behavior under collision dynamics rather than isolated errors. By mid-2024, limited supervised autonomous testing resumed in Phoenix with safety drivers, but GM shifted strategy in December 2024, winding down Cruise's independent pursuits amid high costs exceeding $8 billion invested and integrating its mapping, perception, and planning tech into GM's personal vehicle platforms like Super Cruise. As of 2025, GM holds full ownership of Cruise, advancing toward eyes-off highway driving in models such as the Cadillac IQ by 2028, prioritizing scalable assisted autonomy over unsupervised urban deployment.

Founding and Early History

Inception and Initial Investments

Cruise Automation was established in 2013 in , , by , a former Massachusetts Institute of Technology student, and Daniel Kan, with the initial aim of developing cost-effective autonomous driving systems. The founders targeted retrofit hardware kits capable of enabling advanced driver assistance features, such as automated lane-keeping and , in consumer vehicles for approximately $10,000 per installation. This approach sought to accelerate adoption by leveraging existing car fleets rather than relying solely on new vehicle manufacturing. In early 2014, Cruise joined Y Combinator's Winter batch, gaining access to the accelerator's network, mentorship, and initial seed investment to prototype and test its technology in urban environments like . This participation facilitated rapid iteration on hardware and software, including , , and camera integrations for and control. By March 2014, the company had secured additional seed funding to expand development and begin limited vehicle conversions. Subsequent investments bolstered Cruise's growth ahead of its 2016 acquisition by . In September 2015, it raised $12.5 million in a led by Spark Capital and Y Combinator's , increasing total funding to $16.8 million and enabling hires in and testing. By the acquisition announcement in March 2016, Cruise had amassed approximately $19-20 million in from early backers, achieving a pre-money valuation around $90 million while demonstrating prototypes in complex city driving. These funds supported validation of its full-stack autonomy stack, though challenges in scaling hardware reliability persisted.

Acquisition by General Motors

announced on March 11, 2016, its intent to acquire Cruise Automation, a San Francisco-based startup specializing in autonomous vehicle software, to enhance its internal capabilities in self-driving technology development. The acquisition targeted Cruise's expertise in retrofit hardware and software for enabling Level 4 autonomy, allowing vehicles to operate without human intervention in specific conditions, as Cruise had demonstrated with modified consumer cars tested on public roads. The deal was reported to be valued at approximately $1 billion, marking one of ' largest investments in autonomous driving at the time and reflecting the escalating competition among automakers to secure talent and in the field. Cruise, founded in 2013 by and others, employed about 40 people and had raised $20 million in venture funding prior to the acquisition, focusing on , , and mapping algorithms rather than building vehicles from scratch. This move aligned with GM's broader strategy to integrate innovation, following its $500 million investment in earlier that year, amid regulatory progress like the National Highway Traffic Safety Administration's guidelines for autonomous vehicles. The transaction closed on May 13, 2016, with Cruise continuing as a wholly owned headquartered in , retaining operational independence to foster rapid iteration on autonomy stacks while leveraging GM's manufacturing scale for deployment on platforms like the EV. Post-acquisition, GM committed to expanding Cruise's team and testing fleet, enabling milestones such as obtaining California's first permit for unsupervised autonomous driving tests later in 2016, which validated the strategic fit despite the high upfront costs. The acquisition underscored the capital-intensive nature of autonomy, where software talent acquisition often outweighed hardware development in early competitive dynamics.

Technological Foundations

Sensor Suite and Hardware

Cruise autonomous vehicles employ a multi-modal sensor suite comprising , , and cameras to enable comprehensive environmental perception, , and . These sensors provide 360-degree coverage, functioning in diverse lighting and conditions through . units generate high-resolution 3D point clouds for precise mapping and obstacle avoidance, while radars offer robust measurements and performance in adverse , and cameras deliver visual cues for semantic understanding such as traffic signals and . In the Cruise AV platform, based on the EV, the hardware incorporates five sensors, 21 units—including long-range for distant detection and short-range for proximity—and 16 cameras. The subsystem features three articulating radar assemblies (ARAs) mounted on motors, enabling dynamic pivoting up to 360 degrees to optimize scanning during maneuvers like unprotected turns, enhancing forward, rearward, and lateral awareness. This modular sensor design facilitates upgrades and adaptation to advancing , with built into systems to maintain operation during individual sensor failures. Supporting hardware includes dual redundant computing systems for processing sensor data and executing control commands, along with backup power sources from the vehicle's high-voltage battery and auxiliary units. Additional inertial measurement units (), microphones, and tactile sensors contribute to localization, audio event detection, and feedback. Configurations have evolved across platforms like the purpose-built Cruise Origin, which integrates sensors more seamlessly without manual controls, prioritizing fail-operational safety through verified performance specifications from suppliers and internal testing.

Software Architecture and Machine Learning

Cruise's autonomous driving software employs a modular divided into , , , and control components, enabling the processing of sensor data into safe vehicle actions. This stack integrates models trained on extensive real-world and simulated data, with redundancy built into both hardware and software for , as implemented in vehicles from the third-generation platform unveiled in 2017. The system processes inputs from , cameras, and radar to generate outputs for , acceleration, and braking, emphasizing deterministic behavior over end-to-end neural networks. In perception, models fuse multi-sensor to detect and classify objects, tracking their states in real time. For instance, the DLA v6 model, released in August 2023, enhanced detection accuracy for challenging objects like shopping carts, riderless bicycles, and overhanging cranes by up to 24%, reducing false negatives in urban environments. Similarly, RadarRPN v2 improved radar-based detection of distant objects beyond 150 meters by 4%, aiding in early identification of potential hazards. These models leverage neural networks for semantic segmentation and object bounding, drawing from fleet-logged to refine performance against edge cases such as ultra-near or vegetation overhangs. Prediction modules employ self-supervised to forecast trajectories of dynamic agents like vehicles and pedestrians, focusing on rare "long-tail" events such as sudden U-turns or erratic pedestrian movements. By logging millions of autonomous miles on EV prototypes, Cruise engineers apply upsampling techniques to amplify infrequent scenarios, training models via automatic trajectory labeling without manual intervention. This continuous learning framework, detailed in 2020 publications, compares observed behaviors against learned patterns to anticipate deviations, integrating outputs for contextual predictions. As of October 2025, underlying AI models incorporate training from over five million driverless miles, supplemented by frameworks to scale exposure to improbable events. Planning generates feasible trajectories based on perception and prediction, optimizing for safety, efficiency, and comfort using versions like TSEL v18.1, which refines maneuvers such as left/right turns, double-parked vehicles, and timing unprotected turns to minimize delays while adhering to traffic rules. This module evaluates multiple candidate paths, selecting those that maintain minimal risk conditions even in faults. Control executes these plans through low-level actuation, with LPCv10 enabling smoother braking at red lights or obstacles and better handling of steep inclines, improving passenger experience by reducing jerkiness. The overall stack supports iterative updates, with infrastructure facilitating large-scale data preparation and model retraining to adapt to diverse operational domains.

Vehicle Platforms and Development

Cruise RP-1 Platform

The Cruise RP-1 was the inaugural autonomous driving hardware platform developed by Cruise Automation, consisting of a $10,000 retrofit kit designed to enable hands-free highway operation on compatible vehicles. Announced on June 23, 2014, the system targeted 2012 or newer A4 and S4 models, integrating with the vehicle's existing mechanical systems to assume control of steering, throttle, and braking while requiring the driver to remain attentive and ready to intervene. This aftermarket solution represented an early effort to commercialize partial , predating Cruise's shift toward fully driverless urban vehicles following substantial venture funding and its 2016 acquisition by . At its core, the RP-1 featured a roof-mounted pod equipped with cameras, units, and processing hardware to detect markings, adjacent , and potential obstacles, enabling the system to maintain speed, execute lane changes, and respond to conditions autonomously on highways. The kit included electromechanical actuators to interface with the car's controls, an onboard computer for real-time decision-making via algorithms, and collision avoidance protocols that could override human inputs if necessary, though the system operated at SAE Level 2 autonomy, necessitating constant driver supervision. Priced accessibly for early adopters, it promised shipping in early 2015, but Cruise ultimately discontinued development of the RP-1 by mid-2015 to prioritize a proprietary platform for comprehensive city-street navigation, reflecting evolving industry demands for higher autonomy levels amid rapid advancements in and mapping technologies. Testing of the demonstrated reliable performance in controlled highway scenarios, with the system capable of sustaining speeds up to highway limits while adapting to merges and slowdowns, though it lacked capabilities for urban intersections, detection, or off-highway maneuvers. This platform laid foundational experience for Cruise's team in hardware integration and software, contributing to over 10 million subsequent autonomous miles logged by the company, but its highway-centric design underscored limitations in scaling to unsupervised operation without expanded sensor suites like , which later iterations incorporated.

Cruise AV Modifications

Cruise autonomous vehicles (AVs) are primarily based on modified EV platforms, retrofitted with specialized hardware to enable Level 4 autonomy in urban environments. Initial first-generation vehicles, deployed around 2016, involved retrofitting stock Bolt EVs with Cruise's self-driving systems, including custom sensor integrations and compute modules, accumulating hundreds of thousands of test miles in . These modifications prioritized integration with the Bolt's electric powertrain for efficient, emissions-free operation while adding redundant features. Key hardware additions include a multi-modal sensor suite comprising units (such as Velodyne models for 360-degree mapping), high-resolution cameras, and , mounted in protective pods on the roof and body to withstand urban debris and weather. A notable innovation is the Articulating Assembly (ARA), featuring long-range positioned on the A-pillars that pivot up to 360 degrees to scan ahead, behind, and sideways during complex maneuvers like unprotected left turns; Track 3 vehicles incorporate two ARAs per side and a third for comprehensive coverage, reducing reliance on fixed sensors in adverse conditions where and cameras underperform. This design enhances latency and resolution while minimizing overall sensor count for cost efficiency and . Compute modifications feature high-performance onboard processing units that fuse sensor data in real-time, supported by redundant electrical and communication systems to handle failures without compromising minimal risk maneuvers. Actuator upgrades include fault-tolerant steering, braking, and acceleration mechanisms, distinct from the stock Bolt's controls, enabling precise execution of autonomous commands; third-generation platforms (unveiled in 2017) incorporated multiple backups akin to aerospace standards. Custom wiring harnesses, comprising 4,085 wires and 1,066 connectors, facilitate these integrations, assembled at GM's Lake Orion plant for scalability toward mass production. Post-2023 regulatory scrutiny prompted iterative hardware refinements, such as upgraded sensors and computes for improved environmental robustness, while maintaining the Bolt's base for rapid deployment; by mid-2024, GM announced a production-modified Bolt variant as the focus for future fleets, supplanting bespoke designs like the Origin. These modifications emphasize across sensors, power, and actuation to achieve fault-tolerant operation, with ongoing upgrades driven by fleet data to address detection gaps in dynamic scenarios.

Cruise Origin Shuttle

The Cruise Origin is a purpose-built, all-electric autonomous shuttle developed by Cruise, a subsidiary of , as its first vehicle designed from the ground up for driverless ride-hailing operations. Unveiled on January 21, , the Origin lacks a , pedals, or traditional controls, prioritizing passenger space with bidirectional capability to operate from either end and seating for up to six passengers in facing configurations. Its boxy, upright design maximizes interior volume for shared mobility, drawing on Cruise's experience modifying EVs for testing. Development of the Origin involved multi-year collaboration between Cruise, , and partners including , with initial production intent at GM's Detroit-Hamtramck assembly plant. The vehicle integrates Cruise's sensor suite—lidar, , and cameras—for Level 4 autonomy in geofenced urban environments, aiming to enable scalable fleets for on-demand transport. Early prototypes underwent closed-course testing, and a public demonstration occurred in June 2023 on the East Coast, showcasing its electric and autonomous without passengers. Plans targeted deployment in and Austin, with ambitions for "tens of thousands" of units to disrupt traditional ride-sharing by eliminating human drivers. Progress halted following a October 2023 incident involving a Cruise Bolt EV in , where the vehicle dragged a after a collision with a fire truck, prompting California regulators to suspend Cruise's driverless permits. This led to nationwide operational pauses, federal investigations by the National Highway Traffic Safety Administration, and internal reviews revealing software flaws in handling edge cases like emergency vehicle interactions. In November 2023, General Motors indefinitely delayed Origin production, citing the need to prioritize safety validations over scaling unproven hardware. No units were manufactured in 2024, as Cruise shifted focus to supervised autonomy in personal vehicles. By July 2024, the Origin project was officially terminated, with abandoning robotaxi ambitions amid high costs—exceeding $10 billion invested—and persistent regulatory hurdles. In December 2024, GM announced it would cease funding Cruise's standalone robotaxi efforts, integrating remaining operations into its broader autonomous driving division focused on advanced driver-assistance systems rather than unsupervised shuttles. Restructuring concluded by mid-2025, effectively ending development of purpose-built vehicles like the Origin, which never entered commercial service despite prototypes logging test miles. This outcome reflected broader industry challenges in achieving reliable Level 4 autonomy at scale, with Cruise's data indicating higher disengagement rates in complex urban scenarios compared to human benchmarks, though proponents argued iterative software updates could have mitigated risks absent external pressures.

Operational Deployments

Initial Testing and Permit Acquisitions

![Cruise Bolt EV in San Francisco][float-right] Cruise obtained its initial permit from the (DMV) in 2015 to test autonomous vehicles equipped with safety drivers on public roads, primarily in the area. This permit allowed the company to accumulate early miles of supervised autonomous driving data, focusing on urban environments with complex traffic patterns. Following its acquisition by in March 2016, Cruise expanded its testing operations, deploying a fleet of modified vehicles such as the EV for with safety drivers. By 2017, the company had conducted testing in additional locations including and , while maintaining as a core testing ground to refine its perception and decision-making algorithms under varied conditions like fog and steep hills. A significant milestone occurred on October 15, 2020, when Cruise secured a DMV permit authorizing driverless testing—without safety drivers—for up to five vehicles in , becoming the fifth entity approved for such operations in after Waymo, Zoox, Nuro, and AutoX. Actual driverless testing commenced in December 2020 in the Sunset District, marking the transition from supervised to unsupervised validation. These permits required ongoing disengagement reporting and validations to the DMV, ensuring compliance with state regulations for incremental progression.

Robotaxi Service Rollouts

Cruise initiated its robotaxi service in in early 2022, initially offering driverless rides to employees and a limited public waitlist before expanding operations. By April 2023, the service operated 24 hours a day across the city, with public access permitted during nighttime hours and a fleet of approximately 240 vehicles active across , Phoenix, and Austin combined. Approval for fully unsupervised, round-the-clock public robotaxi service in was granted in 2023, broader commercial deployment shortly before operational suspension. Expansion to additional cities followed rapidly in late 2022. In September 2022, Cruise announced plans to launch driverless services in , and , within 90 days, achieving operational rollout by year's end. The Austin service commenced public driverless rideshare operations on December 21, 2022, without human drivers or monitors, marking one of the fastest market entries for autonomous ride-hailing. Phoenix operations similarly began driverless rides by late 2022, with waitlists opened in October to gauge demand. These rollouts utilized modified EVs equipped with Cruise's autonomous hardware, focusing on geofenced urban areas to minimize complexity. Further geographic plans were announced in 2023, including deployments in Seattle's downtown and surrounding neighborhoods starting August 2023, and exploratory efforts in . However, these initiatives were preempted by a nationwide suspension of unsupervised operations on October 27, 2023, following a pedestrian collision in on October 2 and subsequent DMV permit revocation on October 24. Cruise recalled its entire fleet of 950 driverless vehicles for software updates, halting all commercial ride services across the U.S. Post-suspension activities in 2024 shifted to supervised and manual driving for , such as mapping in Phoenix starting April, but no unsupervised relaunch occurred. By February 2025, following ' full acquisition of Cruise, the company confirmed it would not resume services, pivoting away from commercial driverless ride-hailing amid ongoing safety and regulatory challenges. This effectively ended the initial rollout phase, with no verified commercial operations restored as of October 2025.

Geographic Expansion Efforts

Cruise began its autonomous vehicle operations primarily in , , before expanding testing to , where it conducted mapped driverless rides as early as 2021. By early 2023, the company had initiated testing in , followed by announcements in May 2023 to deploy services in and , , with Houston operations starting days later and Dallas shortly thereafter. These moves supported an internal goal of operating in ten U.S. cities by the end of 2023, encompassing potential sites like Miami, Florida, and , to scale commercial ride-hailing amid growing demand for urban mobility solutions. The October 2023 pedestrian collision in prompted federal and state regulators to suspend Cruise's unsupervised testing permits nationwide, curtailing active expansion. In response, the company prioritized safety reviews and regulatory compliance, resuming limited supervised driving—vehicles operated by human safety drivers—in Phoenix, , and starting June 11, 2024, to remap routes and gather data without public ride-hailing. Austin, which had hosted pre-suspension testing, was not immediately reinstated in these efforts, reflecting a cautious, phased approach amid ongoing investigations by the . Further ambitions included a multiyear partnership with announced in August 2024, aiming to integrate driverless Cruise vehicles into 's platform for qualified trips starting in 2025, potentially leveraging existing test markets for broader rollout. However, these plans were abandoned when , Cruise's parent company, terminated funding for development on December 10, 2024, citing protracted timelines, elevated regulatory hurdles, and capital intensity exceeding projected returns. Cruise's operations shifted toward integrating autonomy technologies into personal vehicles via advanced driver assistance systems such as Super Cruise, with the company merging into GM in early 2025, effectively ending dedicated geographic expansion for commercial . As of February 2026, this pivot resulted in no commercial robotaxi service operating in Chicago or elsewhere in Illinois, despite state discussions on legislation enabling autonomous vehicle testing pilot programs, with no Cruise deployments occurring there.

Safety Performance and Data

Milestone Achievements and Statistical Safety Metrics

Cruise obtained a permit from the (DMV) for driverless testing in October 2020, enabling operations without safety drivers in designated areas. This marked a progression from supervised testing, building on prior modifications to vehicles for autonomous capabilities. In 2022, Cruise initiated fully driverless public passenger rides in , representing an early commercial deployment milestone after years of on-road testing and simulation data accumulation exceeding 5 million miles. Subsequent operational scaling included reaching 1 million fully driverless miles by February 2023, a threshold Cruise described as a critical validation of system reliability in urban environments. This expanded to 5 million driverless miles by October 2023, incorporating real-world challenges like dense traffic and interactions. By late 2025, cumulative driverless miles surpassed 10 million, though post-2023 regulatory suspensions limited further accumulation and public reporting. Safety metrics derived from California DMV disengagement reports and company disclosures indicate progressive improvements prior to operational halts. In 2022, Cruise vehicles achieved an average of 95,900 miles between disengagements during testing, reflecting reduced reliance on human intervention compared to earlier phases. Internal analyses claimed a 74% reduction in injury-causing collisions relative to human-driven equivalents in comparable urban settings, attributing gains to elimination of , impairment, and . Crash rates hovered around or below 1.0 injuries per million miles in early driverless operations, though these figures stem from self-reported data and exclude post-collision dynamics later scrutinized in federal probes.
MetricValue (Pre-2023 Driverless Operations)Comparison to Human Benchmarks
Miles per Disengagement~95,900 (2022 average)Higher than typical supervised AV testing; rates in urban driving estimated at interventions every few thousand miles per NHTSA .
Injury-Causing Crashes per Million Miles~0.74 reduction vs. human (company claim)U.S. average ~1.5-2.0 per million vehicle miles traveled (VMT) for rideshare; AVs avoid common human faults but face edge-case vulnerabilities.
Total Driverless Miles>5 million by Oct 2023Scaled exposure without proportional incident rise, per DMV filings, though absolute crashes remained low-volume.
These metrics, while indicating potential safety edges in controlled scenarios, drew for underemphasizing rare but severe incidents and relying on modeling; independent verification via NHTSA highlighted discrepancies in reporting completeness. Overall, Cruise's pre-suspension data suggested AV systems could mitigate certain crash types at rates exceeding in aggregated studies, but causal attribution requires accounting for exposure biases like geofenced operations.

Incident Analyses and Causal Factors

Cruise autonomous vehicles have been involved in several high-profile incidents, with analyses identifying primary causal factors in software errors, flawed behavioral models, and inadequate response protocols for edge cases. These failures often stem from limitations in sensor data processing—such as , , and camera fusion—under conditions of occlusion, low object positioning, or dynamic interactions with human drivers and pedestrians. In the October 2, 2023, incident, a Cruise vehicle struck a propelled into its path by an adjacent human-driven , then dragged the pedestrian about 20 feet (6 meters) during a programmed pullover maneuver. The software misclassified the initial impact as a non-critical , triggering a "minimal condition" relocation to the curb rather than an emergency halt, while failing to detect the trapped pedestrian due to the vehicle's undercarriage blocking sensors. A subsequent malfunction—caused by one wheel spinning on the pedestrian's leg—finally halted the vehicle after the drag. This event highlighted deficiencies in collision-type classification algorithms and post-impact detection for low-profile or occluded objects, prompting a recall of all 950 Cruise vehicles for software updates to enhance recognition in similar scenarios. Earlier incidents revealed parallel issues in trajectory prediction and braking response. For instance, in an April 2023 collision with a city bus, the Cruise AV did not brake sufficiently after the bus decelerated, resulting from errors in forecasting the articulated vehicle's motion and path planning under partial occlusion. Similarly, a 2022 recall addressed software flaws causing unnecessary hard braking during unprotected left turns, linked to overcautious object detection in complex intersections. NHTSA investigations into over a dozen such events from 2022–2023 pinpointed recurring patterns of sudden stops, fixed-object strikes, and emergency vehicle interactions, attributing them to immature models for predicting erratic human behaviors and environmental anomalies not fully captured in training datasets. Broader causal analyses indicate that Cruise's systems, while reducing human-error crashes, exhibit in unsupervised operations: modules struggle with or novel scenarios, algorithms underperform on rare events like pedestrian ejections, and recovery behaviors prioritize mapped routes over immediate hazards. These factors contributed to the DMV's October 2023 suspension of driverless permits, citing an "unreasonable risk to public safety" from unresolved operational instabilities. Independent reviews, including NHTSA's examination of 1,113 pedestrian conflict reports (with five collisions), underscore the need for enhanced redundancy in failure detection and validation against real-world variability.

Regulatory Interactions

Compliance with State and Federal Rules

Cruise obtained necessary permits from the (CPUC) and (DMV) to conduct autonomous vehicle testing and deployment, including drivered operations in March 2022 and paid passenger services in by August 10, 2023. These permits required adherence to reporting disengagements, collisions, and safety protocols, as well as maintaining collision rates below human benchmarks per state guidelines. However, following multiple incidents, including a October 2023 collision where a Cruise vehicle dragged a 20 feet after an initial impact by a human-driven car, both the CPUC and DMV suspended Cruise's driverless deployment permits on October 24, 2023, citing immediate public safety risks and incomplete disclosure of incident details to regulators. At the federal level, the (NHTSA) mandates reporting of crashes involving automated driving systems within specified timelines under 49 CFR Part 390, with vehicles required to certify compliance with (FMVSS) or seek exemptions for non-compliant features like absent steering wheels. Cruise submitted incomplete crash reports on multiple occasions, leading to a NHTSA consent order on September 30, 2024, mandating improved reporting processes and independent audits. In November 2024, Cruise admitted to submitting a false video record to NHTSA during its investigation of the October 2023 pedestrian incident, resulting in a $500,000 deferred prosecution agreement with the Department of Justice to resolve the . NHTSA closed its broader probe into Cruise's pedestrian collision risks on January 15, 2025, without additional enforcement after the company's recall and operational halt. Overall, while Cruise initially met permitting thresholds in states like , , and through demonstrated safety data submissions, regulatory suspensions and federal reporting lapses highlighted gaps in real-time compliance and transparency, prompting nationwide suspension of driverless operations by , 2023. No comprehensive federal AV framework existed during Cruise's active period, leaving primary oversight to states, though NHTSA's voluntary guidelines emphasized crash reporting and risk mitigation.

Government Investigations and Outcomes

Following the October 2, 2023, incident in , where a Cruise autonomous vehicle struck a pedestrian previously hit by a fire truck and dragged her approximately 20 feet without detecting her presence, the (DMV) suspended Cruise's driverless deployment permit on October 24, 2023, citing an "unreasonable risk to public safety." The (CPUC) simultaneously suspended Cruise's passenger service permit, halting all unsupervised operations in the state. These actions stemmed from Cruise's failure to promptly disclose full details of the crash and broader concerns over the vehicle's behavioral patterns in dynamic urban environments, as evidenced by video footage reviewed by regulators. The (NHTSA) opened an investigation into the crash and related incidents, focusing on Cruise's automated driving system (ADS) performance, including sudden braking and detection failures reported in over 30 collisions since 2022. In September 2024, NHTSA imposed a $1.5 million on Cruise for omitting critical details—such as the dragging of the —from its required crash reports, violating federal reporting mandates under 49 CFR Part 390. Cruise agreed to implement a corrective , including enhanced reporting protocols and software updates, but NHTSA closed a separate probe into hard-braking issues in August 2024 after a fleet-wide software recall addressed the root cause of vehicles becoming immobilized in roadways. In November 2024, the U.S. Department of Justice (DOJ) charged Cruise with wire fraud for submitting a false record to NHTSA during the federal probe, specifically altering a video to obscure the sequence of events in the October 2023 crash. Cruise entered a agreement, admitting the misconduct, paying a $500,000 fine, and committing to ongoing cooperation, safety compliance reforms, and independent monitoring to avoid criminal prosecution. This resolution highlighted internal pressures at Cruise to minimize incident severity in regulatory communications, as detailed in the DOJ's findings. By January 2025, NHTSA closed its remaining preliminary investigation into fleet without further enforcement, following ' December 2024 decision to cease funding Cruise's consumer robotaxi operations and pivot to partnerships for advanced driver-assistance systems. The closure removed a regulatory overhang but did not absolve prior lapses, with NHTSA noting Cruise's operational suspension had mitigated ongoing risks. Separate inquiries by the Securities and Exchange Commission (SEC) into Cruise's post-crash disclosures remained unresolved as of early 2025, though no additional penalties were publicly announced. These outcomes underscored systemic challenges in Cruise's transparency and ADS reliability, contributing to the program's effective termination.

Business Trajectory

Funding Rounds and Partnerships

Cruise Automation, founded in 2013, raised $12.5 million in a Series A funding round in September 2015 from investors including and individual backers. In March 2016, acquired Cruise for approximately $1 billion, marking its entry into autonomous vehicle development and providing substantial resources for scaling operations. Post-acquisition, GM committed over $10 billion in total investments into Cruise through 2024, supporting expansion of its robotaxi fleet and technology. In October 2018, Honda invested $750 million in Cruise as part of a with GM to develop autonomous vehicles for the Japanese market, valuing the company at $14.6 billion at the time. In 2023, the partnership announced plans to launch a Level 4 autonomous taxi service in Tokyo starting early 2026, deploying Cruise Origin vehicles through a new joint venture company. However, following GM's decision to cease robotaxi development at Cruise in December 2024 due to high costs and competition, Honda withdrew from the partnership, ceased funding, sold its stake in Cruise, and the planned service did not launch. This was followed by a May 2019 funding round of $1.15 billion, led by , to accelerate commercialization efforts. A significant $2 billion corporate round occurred in January 2021, enhancing Cruise's valuation and operational capabilities. In April 2021, participated in a $2.75 billion round alongside and , building on prior delivery pilots between and Cruise to test autonomous grocery transport. Further investments included a $1.35 billion Series E round in February 2022. In March 2022, GM acquired 1's equity stake in Cruise for $2.1 billion and made an additional $1.35 billion investment, consolidating control while retaining external partnerships. Strategic partnerships extended beyond funding: collaborated with Cruise and GM starting January 2021 to leverage Azure cloud services for scaling autonomous vehicle production and operations. In August 2024, Cruise partnered with to integrate its autonomous vehicles into the Uber platform for driverless ride-hailing services, aiming to deploy in select markets pending regulatory approval.
Funding RoundDateAmountKey Investors
Series ASeptember 2015$12.5 million, others
Acquisition by GMMarch 2016~$1 billion
Honda InvestmentOctober 2018$750 million
Late-Stage VCMay 2019$1.15 billionHonda-led
Corporate RoundJanuary 2021$2 billionVarious
Late-Stage VCApril 2021$2.75 billion, ,
Series EFebruary 2022$1.35 billionUndisclosed
SoftBank Buyout & GM InvestmentMarch 2022$2.1 billion (buyout) + $1.35 billion

Financial Challenges and Strategic Pivot

Cruise incurred substantial financial losses, with (GM) having invested approximately $10 billion in the since its 2016 acquisition, yet yielding no significant revenue stream by late 2024. The unit's high operational costs, including vehicle development, mapping, and fleet maintenance, contributed to ongoing deficits, exacerbated by the suspension of unsupervised services following a October 2023 pedestrian incident in that halted commercial operations and triggered regulatory scrutiny. In response to these challenges, GM announced on December 10, 2024, the cessation of funding for Cruise's dedicated program, citing prohibitive development expenses amid intensifying competition from entities like and Tesla, and the absence of a near-term profitability pathway. This decision followed earlier projections in 2022 by GM CEO , who had envisioned Cruise generating $50 billion in annual revenue by 2030, a target undermined by safety setbacks and regulatory delays. The pivot redirected resources toward integrating autonomous driving technology into GM's personal vehicles, such as expanding the Super Cruise hands-free system, rather than pursuing a standalone service. The strategic shift included folding Cruise's operations and approximately 2,300 employees into GM's broader engineering organization, with anticipated annual cost savings exceeding $1 billion post-restructuring, completed by mid-2025. GM recorded over $5 billion in special charges in Q4 2024, primarily non-cash restructuring costs tied to Cruise, reflecting the financial toll of the program's underperformance. Subsequent layoffs at Cruise, reducing the workforce by nearly 50% in February 2025, underscored the pivot's emphasis on efficiency over expansive ambitions. This realignment positioned Cruise's technology as a component of GM's core lineup, prioritizing scalable, supervised over unsupervised urban fleets.

Shutdown and Legacy

Decision to Cease Robotaxi Operations

On December 10, 2024, General Motors announced it would cease funding Cruise's robotaxi development program, redirecting resources toward advanced driver assistance systems for personal vehicles rather than commercial autonomous ride-hailing services. The decision followed years of operational challenges, including a nationwide suspension of driverless operations in October 2023 after California regulators revoked Cruise's driverless deployment permit due to safety concerns stemming from incidents such as a pedestrian being dragged by a vehicle in San Francisco. GM cited the highly competitive robotaxi market, where scaling required substantial time and capital amid intensifying rivalry from entities like Alphabet's Waymo and Tesla, as key factors rendering the path to profitability untenable in the near term. Cruise, which GM acquired in 2016 for over $1 billion and had invested approximately $10 billion in by , reported consistent annual losses exceeding $1 billion, exacerbated by regulatory scrutiny and rebuilding efforts post-2023 incidents. CEO emphasized capital allocation priorities, stating that the robotaxi business demanded resources disproportionate to projected returns given the regulatory and technical hurdles observed in real-world deployments. The announcement projected annual savings of up to $1 billion for GM by halting the program, with Cruise's approximately 200-person core autonomy team integrating into GM's broader personal vehicle AV efforts focused on supervised systems like Super Cruise. Subsequent to the decision, Cruise reduced its workforce by nearly 50% in 2025, reflecting the wind-down of robotaxi-specific operations while retaining capabilities for potential non-commercial applications. This pivot underscored a broader industry reassessment of viability, where empirical from deployments highlighted persistent and scalability issues, including disengagement rates and incident frequencies that lagged behind supervised personal AV metrics. GM's strategy shift prioritized incremental advancements in consumer vehicles, where market demand and regulatory approval paths proved more feasible than unsupervised urban fleet operations.

Integration into GM's Broader AV Strategy

Following the cessation of Cruise's robotaxi operations in December 2024, General Motors restructured its autonomous vehicle (AV) efforts by integrating Cruise's engineering and AI capabilities directly into GM's core development teams, prioritizing advancements in personal vehicle autonomy over commercial ride-hailing services. This consolidation aimed to leverage Cruise's accumulated data—exceeding 5 million miles of real-world driving—and sensor fusion technologies to enhance GM's existing Super Cruise hands-free driving system, which had already been deployed in over 750,000 vehicles by late 2024. GM CEO Mary Barra emphasized that the shift would accelerate progress toward higher levels of driver assistance, citing the inefficiencies of maintaining a separate robotaxi unit amid regulatory hurdles and capital demands. By February 2025, GM acquired the remaining minority stake in Cruise, achieving full ownership and enabling seamless technology transfer without external investor constraints. Cruise's AV stack, including its lidar-based perception systems and models refined through urban testing in and Phoenix, was repurposed to bolster Super Cruise's evolution toward SAE Level 3 autonomy, allowing "eyes-off" operation in geofenced highway scenarios. GM announced plans to introduce this capability commercially by 2028, initially on Ultium-platform electric vehicles like the and , where Cruise-derived AI would handle dynamic and path planning beyond current driver-monitoring limits. This integration reduced redundancy, with GM projecting $500 million in annual cost savings starting in 2025 by eliminating separate Cruise funding. The broader strategy positions Cruise's legacy as a foundational asset for GM's consumer-focused AV roadmap, diverging from competitors like Waymo and Tesla by emphasizing supervised personal ownership over unsupervised fleets. Validation frameworks absorbed from Cruise expedited GM's timeline, with internal simulations incorporating Cruise's incident-derived safety data to refine edge-case handling, though GM has not publicly detailed quantitative safety improvements from this merger. Partnerships, such as with Honda for applying AV tech to non-GM platforms, were wound down in favor of in-house scaling, reflecting a pragmatic reassessment of robotaxi economics amid persistent challenges like high operational costs and public trust erosion following 2023 pedestrian incidents.

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