GM Betting $500 Million On Lyft To Boost Autonomous Vehicles

General Motors Co will invest $500 million in Lyft Inc. to develop a long-term strategic alliance to build out a connected, ownerless car service.

The deal unveiled Monday marks the first time a large car maker has joined with a ride-sharing company, and has catapulted Lyft’s valuation to $5.5 billion.

Lyft unveils $1 billion Series F Fund

On Monday, Lyft unveiled the close of its $1 billion Series F round, with General Motors contributing $500 million, while the other $500 million came from Saudi Prince Al-Waleed’s Kingdom Holding Company, Janus Capital Management, and previous investors Didi, Rakuten, and Alibaba.

The latest deal is of particular interest considering Lyft CEO Logan Greene...