This story is getting front-paged less about the tech or business aspects and more about so many in YC feeling validation through this outcome. But Kyle’s announcement is pretty minimal because it’s really more of a handoff than a validation of the YC country club.
Dan Amman’s original edict to Cruise was to Beat Uber. Uber was not just disruptive in 2016, but they really wanted everyone to feel the size of their ambition. E.g. they placed an order for 100,000 Mercedes S-Classes that ATG was going to then equip. Uber could raise billions easily, and they were culturally reckless, so the OEMs thought them a threat.
When Dan Amman took over, his pay package showed he very much wanted to be a Silicon Valley billionaire (see S-1 docs) who saved GM. And he had history with Mary. To Kyle, Mary is much closer to a boss, but to Dan, Mary is more of a colleague.
Fast forward to today and the self-driving landscape has changed a ton. Uber barfed all over themselves and COVID has changed the world. Dan Amman no longer had a case for making him a SV billionaire, and he never was able to fix Cruise’s culture problems* anyway.
So the change makes a ton of sense, and I’m sure Dan will find some other way to become as rich as sama or Justin Kan. Dan has already done a ton for GM and he’s good at what he does.
* I left Cruise a while ago and while Kyle hired a lot of good people, he also hired a ton of jerks. In some cases he did it personally. I have four different stalkers from Cruise, one who apparently slid into a panel and got me denied a job last year. Kyle, while I do think you’re the best CEO for Cruise right now, you created some culture problems that have caused lasting effects. Focus on what customers want and let the engineers get their job done.