Argo AI will cease operations as Ford and Volkswagen pull investments
Enlarge / Argo AI was one of the more promising autonomous driving startups. But now it's ceasing operations. (credit: Aurich Lawson | Argo)
The world of autonomous driving took a big blow on Wednesday with the sudden news that Argo AI will shut down. The high-profile startup had deep pockets courtesy of large investments from Ford and then Volkswagen Group, but both automakers are pulling back those resources to apply them to other problems like advanced driver assistance systems.
Argo was founded in 2016 and emerged into public view the following year with the news that Ford was investing a billion dollars in the startup over five years. At the time, the automaker was planning to launch a commercial autonomous ride-hailing business in 2021-a date that it obviously missed and an ambition it no longer holds.
In 2019, VW Group joined the party, adding another billion dollars in cash and $1.6 billion in the form of Audi's autonomous driving spinoff. The company also agreed to buy half of Ford's stake over three years.