Microsoft expects an $800 million impairment charge in the second quarter of 2025 due to General Motors’ exit from Cruise, Reuters

(Reuters) – Microsoft ( NASDAQ: ) expects to record an impairment charge of about $800 million in the second quarter of fiscal 2025 due to General Motors ( NISE: ) exiting its Cruise autonomous driving business, the tech giant said in a filing . on Wednesday.

General Motors said Tuesday it was ending development of robotaxis, in which it has invested more than $10 billion since 2016, citing competition in the robotaxi market and the “time and resources” it would take to scale the business.

Microsoft acquired a minority stake in Cruise in January 2021 in a combined new capital of more than $2 billion, which included institutional investors such as Honda Motor Co. (THEY ARE NOT:).

The Windows maker also said the impairment charge would have a negative impact of about 9 cents on its earnings per share in the second quarter.