Argo AI drone startup to shut down

The American self-driving technology startup Argo AI will cease operations. Engadget reports.

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“In accordance with our shareholders, a decision was made that Argo AI will not continue its mission as a company,” said a startup spokesperson.

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The assets of the liquidated company will be acquired by automakers Volkswagen and Ford, which had previously invested $3.6 billion in it. It is unclear how the companies will divide the startup’s assets between them. It is also not disclosed how many of the 2,000 employees will transfer to Ford and Volkswagen.

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According to the report, all Argo AI staff will be entitled to bonuses and severance packages.

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“Many employees will be able to continue working on autonomous driving technologies either at Ford or at Volkswagen,” the startup said.

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It is known that some engineers will transfer to Ford to work on level-2 and level-3 autonomous systems. The company reevaluated the prospects for more advanced driver-assistance technologies and focused on proven solutions.

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According to Ford’s quarterly report, the startup failed to attract new investors, its valuation fell by $2.7 billion. Net loss for the third quarter of 2022 was $827 million.

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In 2017 Ford announced it would invest $1 billion in Argo AI over five years. Two years later Volkswagen invested $2.6 billion in the startup.

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Around the same time, the two companies said they would work on vehicles with Argo AI’s autonomous driving technologies. The manufacturers split a significant majority of the startup’s shares between them.

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Argo AI tested the technology on public roads in the United States and Germany. In May 2022, in Austin and Miami, the company began testing pilotless drones without safety operators.

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In September, Argo AI announced a range of tools and services designed to support autonomous delivery and the operation of robotaxi.

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Lyft also considered deploying Argo AI vehicles with artificial intelligence on public roads.

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In July 2021, Ford announced plans to launch a commercial robotaxi service in Miami and Austin.

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