Microsoft (MSFT, Financial) announced an expected $800 million impairment charge in the second fiscal quarter related to its minority investment in Cruise, General Motors' autonomous driving company. This follows GM's decision to cease funding the unit due to high costs associated with technology development and fleet formation.
Microsoft's investment in Cruise was part of a $2 billion funding round announced in January 2021, aiming to secure a position in the connected car services market. This strategic move aligns with competitors like Alphabet's Google, which is involved in the sector through its Waymo division.
The $800 million charge is anticipated to negatively impact Microsoft's second-quarter earnings by approximately 9 cents per share.
