General Motors Inc. and Lyft Inc. on Monday set out plans to develop an on-demand network of self-driving cars as the U.S. No. 1 automaker announced it would put $500 million into the ride-sharing service's latest $1 billion fundraising round.

The Detroit-Silicon Valley crossover deal comes as automakers are working out how to respond to the rush of technology companies such as Apple, Alphabet and Uber — Lyft's biggest rival — to control cars of the future and likely reshape the global automotive industry.

The two companies said the partnership, which includes one of GM's largest investments in another company, stemmed from the shared view that self-driving cars will first reach consumers as part of a ride-sharing service, rather than vehicles owned by drivers.