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After spending more than $10 billion on its robotaxi unit, General Motors is abandoning its Cruise driverless ride-hailing service.

The Detroit automaker on Tuesday said it will no longer fund its Cruise division’s robotaxi development and will instead fold the unit into its broader tech team. GM shares rose 2.3% in extended trading.

“Cruise was well on its way to a robotaxi business — but when you look at the fact you’re deploying a fleet, there’s a whole operations piece of doing that,” GM CEO Mary Barra said on a call Tuesday. Barra said GM would instead focus on the development of autonomous systems for use in personal vehicles.

GM cited the increasingly competitive robotaxi market, capital allocation priorities and the considerable time and resources necessary to grow the business as reasons for its decision.

The company will combine the majority-owned Cruise LLC with GM technical teams. Barra, who also serves as board chair of Cruise, said the companies have yet to determine how many employees will move to GM. Cruise has nearly 2,300 employees, a GM spokesperson told CNBC.

GM acquired Cruise in 2016. The automaker currently owns about 90% of Cruise and has agreements with other shareholders that will raise its ownership to more than 97%, GM said in a statement. GM anticipates it will complete the acquisition of remaining Cruise shares from outside shareholders by early 2025, CFO Paul Jacobson said Tuesday.

GM’s current annual expenditure on Cruise amounted to about $2 billion, and the restructuring would cut that by more than half, Jacobson said.

Honda, an outside investor in Cruise, told CNBC that it had planned to launch a driverless ride-hail service in Japan in early 2026, but will now re-assess those plans and make adjustments if needed.

“Honda remains committed to various research and development initiatives aimed at providing new mobility solutions to our customers in Japan,” a Honda spokesperson said on Tuesday. Honda said its total investment in Cruise was $852 million.

Cruise founder Kyle Vogt, who left the company in November 2023, posted on X after the announcement, “In case it was unclear before, it is clear now: GM are a bunch of dummies.”

An early entrant in the U.S. robotaxi market, Cruise grounded its driverless operations in October 2023, shortly before Vogt’s departure. The National Highway Traffic Safety Administration fined Cruise $1.5 million after the company failed to disclose details of a serious crash that month involving a pedestrian.

A third-party probe into the incident ordered by GM and Cruise found that culture issues, ineptitude and poor leadership fueled regulatory oversights that led to the accident. The probe also investigated allegations of a cover-up by Cruise leadership but found no evidence to support those claims.

In July of this year, GM announced that it would indefinitely delay production of the Origin autonomous vehicle as its Cruise self-driving unit attempted to relaunch operations. At that point, Cruise began to focus on using the next-generation Chevrolet Bolt for development of its autonomous vehicles.

As Cruise’s operations were on hold, its robotaxi rivals gained ground.

Alphabet-owned Waymo has begun to operate commercial robotaxi services across several major U.S. metro areas, with the company last week announcing its plans to expand into Miami. Chinese autonomous vehicle makers including Pony.ai and WeRide have rolled out in overseas markets as well.

Tesla, meanwhile, showed off design concepts for a self-driving Cybercab at an event in October. Tesla still classifies the Autopilot and Full Self-Driving software in its vehicles as “partially automated driving systems,” which require a human to be ready to steer or brake at all times. In an October earnings call, Tesla CEO Elon Musk said the company will launch a self-driving ride-hailing service in California and Texas as early as 2025.

SoftBank-funded Wayve is testing its autonomous vehicles in San Francisco, and Amazon-owned Zoox is also testing its autonomous vehicles, which do not feature steering wheels, in several U.S. cities including San Francisco.

SoftBank’s Vision Fund was also an investor in Cruise, with a nearly 20% stake, until GM repurchased the shares for $2.1 billion in 2022.

WATCH: Uber and Lyft drop on news Waymo is expanding to Miami

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Why Eaton’s CFO change isn’t a red flag — plus, Palo Alto’s buzzy new deal

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Why Eaton's CFO change isn't a red flag — plus, Palo Alto's buzzy new deal

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Google launches Nano Banana Pro, an updated AI image generator powered by Gemini 3

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Google launches Nano Banana Pro, an updated AI image generator powered by Gemini 3

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Google on Thursday rolled out Nano Banana Pro, its latest image editing and generation tool, continuing the company’s momentum after launching its new Gemini artificial intelligence model earlier this week.

The product is built on Gemini 3 Pro, which was announced on Tuesday and contributed to record-breaking stock highs.

Alphabet’s stock was up 4% Thursday.

Josh Woodward, vice president of Google Labs and Gemini, told CNBC’s Deirdre Bosa that the Nano Banana Pro’s capabilities expand beyond its original iteration, which launched in late August.

“It’s incredible at infographics. It can make slide decks. It can take up to 14 different images, or five different characters, and sort of keep that character consistency,” he said.

He added that internal users have experimented with the feature by inputting code snippets and even LinkedIn resumes to create infographics.

“I think this ability to visualize things that were previously maybe not something you would think of as a visual medium that tends to be one of the magic things people are finding with it,” Woodward said.

The original Nano Banana went viral on social media as users turned photos of themselves or their pets into hyperrealistic 3D figurines. Woodward wrote in an X post in September that the product helped add 13 million new users to the Gemini app in the span of four days.

Nano Banana Pro is currently available in the Gemini app, with limited free quotas, Google’s writing assistant, NotebookLM, as well as the company’s developer, enterprise and advertising products.

Google AI Pro and Ultra subscribers will have access to the product in Google’s search features AI Mode.

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The feature will later also roll out to Ultra subscribers first in Flow, Google’s AI filmmaking tool.

Google introduced another feature in the Gemini app that allows users to upload any image to find out if it was generated by Google AI.

Images generated on free Nano Banana accounts will have a watermark, but it will be removed for Google AI Ultra tier subscribers.

Google has been working to gain ground on OpenAI in the generative AI race, which ignited after the release of ChatGPT in 2022.

Last week, OpenAI announced two updates to its GPT-5 model to make it “warmer by default and more conversational” as well as ” more efficient and easier to understand in everyday use,” the company said.

ChatGPT currently tops the list of free apps on Apple’s App Store, with Gemini in the second spot.

The Gemini app currently has over 650 million monthly active users per month, and Gemini-powered AI Overviews has 2 billion monthly users, Google said in a release. OpenAI CEO Sam Altman said in October that ChatGPT had reached 800 million weekly active users.

Woodward said Google AI products have had growing demand, with many users signing up for Gemini’s subscription plan to have “higher limits with some of these advanced models.”

“We’re seeing high numbers of people coming to lots of these products,” he said. “That’s really the best problem to have, is there’s a lot of demand, and we’re trying to figure out actually how to serve it.”

The company is looking to continue scaling its AI offerings, Woodward said, highlighting Flow, Google’s AI filmmaking tool, and Genie, a “world building” model that is currently available as a limited research preview.

Gemini 3.0 and Google's custom AI chip edge

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U.S. greenlights AI chip exports to Gulf tech giants after Saudi Crown Prince’s Washington visit

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U.S. greenlights AI chip exports to Gulf tech giants after Saudi Crown Prince's Washington visit

U.S. President Donald Trump and Crown Prince and Prime Minister Mohammed bin Salman of Saudi Arabia stand for a photo with Tesla CEO Elon Musk, Nvidia CEO Jensen Huang and other participants at the U.S.-Saudi Investment Forum at the Kennedy Center on Nov. 19, 2025 in Washington, DC.

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The U.S. has approved sales of advanced Nvidia chips to Saudi Arabia’s HUMAIN and the United Arab Emirates’ G42, authorizing the state-backed firms to buy up to 35,000 chips, worth an estimated $1 billion.

The approval of these chip exports marks a major reversal for the U.S., which had previously balked at the idea of direct exports to state-backed AI companies in the Gulf. Export controls were put into place to avoid advanced American technology making its way to China through the back door of Gulf Arab states.  

Before former President Joe Biden left office in January, he administered a final round of export restrictions on advanced AI chips, targeting companies like Nvidia, in a sweeping effort to keep that cutting-edge U.S. intellectual property out of China’s reach.

Now, President Donald Trump is moving to expand the reach of such advanced technology in order to “promote continued American AI dominance and global technological leadership,” the U.S. Commerce Department said in a statement published on Wednesday. 

The U.S. Commerce Department approved the chip exports, with the condition the state-backed AI outfits agree to “rigorous security and reporting requirements,” overseen by the Department of Commerce’s Bureau of Industry and Security.

Saudi’s Victory Lap

The export approval follows Saudi Crown Prince Mohammed bin Salman’s trip to Washington this week where the Kingdom pledged to spend $1 trillion in the U.S., up from $600 billion originally committed during Trump’s Gulf tour in May.

“Even if we don’t get to that, both sides have skin in the game,” Afshin Molavi, senior fellow at the Foreign Policy Institute of the Johns Hopkins University School of Advanced International Studies, told CNBC’s Dan Murphy.

Saudi pledges $1 trillion investment as dealmakers head to DC

Saudi Arabia’s AI company HUMAIN, backed by its nearly $1 trillion Public Investment Fund signed a long list of partnerships with Adobe, Qualcomm, AMD, Cisco, GlobalAI, Groq, Luma, and xAI at a U.S.-Saudi Investment Forum held in Washington, D.C this week. Notably, HUMAIN will be teaming up with Elon Musk’s xAI to build a 500 megawatt data center in the Kingdom.

“What we want to do in 2026 is to build the capacity equivalent to what Saudi has built in the last 20 years, in one year,” Tareq Amin, CEO of HUMAIN, said at the summit. HUMAIN is hoping to position Saudi Arabia as the third biggest global AI hub, after the likes of the U.S. and China.

Winning over the U.S. Commerce Department

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