General Motors announced Tuesday it will no longer be funding its Cruise robotaxi operations after years of navigating operational hiccups and facing legal action over injuries sustained by the driverless vehicle technology.

General Motors is shutting down its Cruise robotaxi project, citing intense competition for self-driving cars and the steep costs associated with developing them. Why it matters: Houston was the largest of three cities nationwide where Cruise was trying to reintroduce its autonomous rideshare service after a tumultuous launch in 2023.

General Motors’ move Tuesday to halt funding for its Cruise robotaxi program makes way for Silicon Valley rivals to take a firmer hold of the potentially multibillion-dollar business. But experts say bowing out is the right choice for the embattled Cruise.