Volkswagen closes US$2.6 billion investment in self-driving startup Argo AI

Volkswagen closes US$2.6 billion investment in self-driving startup Argo AI

89th Geneva International Motor Show in Geneva
A Volkswagen logo is seen on a new car model at the 89th Geneva International Motor Show in Geneva, Switzerland March 5, 2019. REUTERS/Denis Balibouse/Files

REUTERS: German automaker Volkswagen AG has closed its US$2.6 billion investment in Argo AI, the Pittsburgh-based self-driving startup disclosed in a blog post on Tuesday.

Argo, founded in 2016 by Bryan Salesky and Peter Rander, is now jointly controlled by Volkswagen and Ford Motor, which made an initial investment in Argo shortly after it was founded.

Details of the Volkswagen investment, which does not include an agreement to purchase US$500 million worth of Argo stock from Ford, was announced last July.

Volkswagen's agreement includes the transfer to Argo of its Munich-based Autonomous Intelligent Driving unit, which boosts Argo's employment to more than 1,000, according to Salesky.

Last week, Volkswagen disclosed that its supervisory board had approved several projects in a multibillion-dollar alliance with Ford that also was announced last July.

Ford created Ford Autonomous Vehicles LLC in 2018, pledging to invest US$4 billion until 2023 and had sought outside investors to help share the spiraling cost of developing autonomous vehicles.

Source: Reuters

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