Microsoft (MSFT, Financial) anticipates an $800 million impairment charge in its second quarter related to its investment in General Motors' (GM) autonomous driving business, Cruise. This charge is expected to negatively impact earnings per share by approximately 9 cents. Microsoft initially invested in Cruise in January 2021 as part of a $2 billion investment in the autonomous vehicle startup, where GM holds a majority stake.
GM recently announced the closure of its robotaxi project due to high development and fleet deployment costs. The company plans to integrate Cruise into its broader tech team, focusing on advanced driver-assistance systems and autonomous systems for personal vehicles. GM aims to increase its Cruise ownership to over 97% and complete the acquisition of remaining shares by early 2025.
