General Motors has decided to discontinue its robotaxi development efforts at Cruise, its self-driving technology division, after investing more than $10 billion in the ambitious project. The automaker cited significant resource demands, regulatory risks, and growing competition in the autonomous vehicle market as key factors behind its decision.

In 2023, GM had predicted Cruise could generate $50 billion in annual revenue by 2030, but the challenges of scaling the business proved insurmountable. CEO Mary Barra emphasized that the move aligns with GM’s focus on adopting the right technologies to ensure efficiency and success in the evolving auto industry. The restructuring is expected to save GM over $1 billion annually, with the plan set to be finalized by mid-2025.

The decision mirrors broader industry trends, as rivals like Ford have also scaled back autonomous driving ventures due to high costs and technological barriers. Cruise recently faced scrutiny over a pedestrian injury incident involving one of its robotaxis, which further complicated the unit’s future. GM plans to integrate some Cruise employees into other projects while pursuing full ownership of the division, signaling a shift in its approach to innovation.