GM Cruise LLC, the self-driving car division of General Motors Co., is set to receive $2.25 billion in funding from Japanese telco giant SoftBank Group Corp. after the investment received approval from a government committee.

The deal was announced in May 2018 but came at a time of increased scrutiny of foreign investment into U.S.-owned companies, requiring approval in the process.

Reuters reported that the Committee on Foreign Investment in the United States or CFIUS approved the investment on Friday but only with an assurance that Cruise’s technology would be completely off-limits to SoftBank.

SoftBank is Japanese, but the company also has investments in China and is said to encourage portfolio companies to share information, raising concerns that Cruise’s intellectual property and trade secrets could find their way to the Middle Kingdom. SoftBank has a number of co-investments with Chinese social media giant Tencent Holdings Ltd. as well as holding a stake in ride-hailing provider Didi Chuxing Technology Co., the latter known to be developing its own self-driving car technology.

The deal will see SoftBank obtain a seat on Cruise’s board at the time the company is rapidly growing from billions of dollars of investment since it was acquired by GM in 2016.

In its most recent round in May, Cruise raised $1.15 billion more at a $19 billion valuation in a venture capital round led by T. Rowe Price Group that included GM, Honda Motor Co. Ltd. and SoftBank as well. SoftBank’s participation was in addition to the $2.25 billion investment that has now been approved.

Big rounds are normal for the company. Honda came on board via a $2.75 billion deal in October, including $750 million in direct funding and $2 billion over 12 years on collaboration with Cruise for the development of purpose-built autonomous vehicles.

The total amount of funding raised by Cruise since it was acquired by GM is now believed to be $7.25 billion. Post-deal, SoftBank will own a nearly 20 percent stake in the company.

Photo: Cruise