GM drops a billion dollars to play autonomous driving catch-up

General Motors has bought autonomous driving tech company, Cruise Automation, for a reported $US1 billion, according to new reports.

The San Francisco-based firm, which was working on an aftermarket autonomous-driving kit, was only founded in 2013 and has just 40 employees.

GM has refused to confirm the amount of money it paid for the tiny tech company, which was founded by Massachusetts Institute of Technology dropout Kyle Vogt and Daniel Kan.

The pair were planning to offer their aftermarket autonomous driving kit for $10,000 and claim that it already works on Audi models with lane keep assist and auto emergency braking hardware fitted.

Claimed to give the Audis a sophisticated autopilot mode on highways, the aftermarket tech steered, braked and accelerated autonomously.

Helping seal the deal was the Cruise Automation Audi A4 demonstrator, which could be controlled using just a game console.

As part of the deal, GM claims Cruise Automation will remain in San Francisco and operate independently to develop its self-driving tech.

Speaking following the deal’s announcement, GM North Amercia chief Mark Reuss said the US car-maker would invest “significantly” in Cruise Automation and added: “Cruise provides our company with a unique technology advantage that is unmatched in our industry”.

It’s no known if Cruise Automation will be allowed to continue developing its aftermarket self-driving kits.