General Motors' recent decision to no longer fund Cruise, its self-driving car subsidiary, has sent shockwaves through the autonomous vehicle industry. The move marks a significant shift in the landscape, with implications for major players and startups alike. Founded in 2013 by Kyle Vogt and Dan Kan, Cruise had been a pioneer in the autonomous vehicle space, with GM acquiring it in 2016 for $1 billion.

The autonomous vehicle world was a small and dynamic place back in 2015, with Cruise having a few dozen employees and Waymo still in its infancy as the Google self-driving project. However, the hype surrounding autonomous vehicles soon engulfed the industry, with startup founders becoming the darlings of the VC world. Fast-forward to 2023, and just a few well-funded giants remained, including GM's Cruise, Alphabet's Waymo, Hyundai-backed Motional, and Amazon-owned Zoox.

In August 2023, Cruise finally received the last permit required to operate commercially in San Francisco, with hopes high for the company's future. However, an incident in October 2023 left a pedestrian stuck under and then dragged by one of its robotaxis, leading to Vogt's resignation, a 24% workforce layoff, and regulators suspending its permit. Despite initial indications that Cruise would return as a leaner, more tightly controlled enterprise, GM chairman and CEO Mary Barra has different plans for the company.

The implications of GM's decision are far-reaching, with Microsoft and Honda already feeling the effects. Microsoft, which had invested in Cruise, will likely take a financial hit, while Honda has logically cut funding to a joint program in Japan. As the autonomous vehicle landscape continues to evolve, it remains to be seen how this shift will impact the industry as a whole.

In other news, Hyundai's urban air mobility startup, Supernal, is shifting its global headquarters from Washington, D.C., to Irvine, with around three dozen workers being asked to relocate. Meanwhile, investors continue to show interest in future-of-flight SPACs, with Archer Aviation and Joby Aviation raising significant funds to drive their growth.

Additionally, Nikola, a producer of battery and hydrogen-electric trucks, has taken steps to repay its debts and raise equity, while WeaveGrid, a San Francisco-based startup, has raised $28 million in a round led by Toyota's Woven Capital. San Francisco has also been named the most prepared city for new transportation technologies like AI, autonomous vehicles, and air taxis, according to a new urban mobility readiness index.

Stay tuned for further updates on the evolving autonomous vehicle landscape, as this story continues to unfold.