American self-driving technology startup Argo AI will cease operations. He writes about it Involve.
“In consultation with our shareholders, it was decided that Argo AI will not continue its mission as a company,” said a spokesperson for the startup.
The assets of the liquidated company will be acquired by automakers Volkswagen and Ford, which previously invested $ 3.6 billion in them, but it is not known exactly how the companies will divide the startup’s properties between them. It is also not reported how many of the 2,000 employees will go to Ford and VW.
According to the report, all ArgoAI personnel are entitled to bonuses and severance pay.
“Many employees will be able to continue working on automated driving technologies at both Ford and Volkswagen,” the startup said.
It is known that some of the engineers will go to Ford to create second and third tier unmanned systems. The company reassessed the prospects for more advanced driver assistance technologies and focused on proven solutions.
The startup failed to attract new investors, its valuation dropped by $ 2.7 billion, according to Ford’s quarterly report. The net loss for the third quarter of 2022 was $ 827 million.
Ford said in 2017 that it would invest $ 1 billion in Argo AI over five years. Two years later, VW invested $ 2.6 billion in the startup.
Around the same time, both companies said they would be working on cars with Argo AI autonomous driving technologies. The producers split a “significant majority” of the startup’s shares among themselves.
Argo AI tested the technology on public roads in the United States and Germany. In May 2022, in Austin and Miami, the company launched an unmanned drone trial.
In September, Argo AI announced a set of tools and services designed to support the autonomous delivery and operation of robotic taxis.
Lyft also considered using AI-enabled Argo vehicles on public roads.
Recall that in July 2021 Ford announced the plans run in Miami and Austin commercial robotic taxi service.
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