Volkswagen investing $2.6 billion in Argo AI
Volkswagen AG is investing $2.6 billion in self-driving vehicle company Argo AI.
Volkswagen will commit $1 billion in funding, and will also contribute its Autonomous Intelligent Driving (AID) company, which is valued at $1.6 billion.
“Our agreement with Volkswagen positions us as a technology platform company, expands the potential geography for deployment and will further fuel our product development,” Argo AI explains in a company blog post.
“In fact, we’re the first self-driving company with definitive deployment plans in both the United States and Europe.”
Munich, Germany, the location of AID, will become Argo AI’s European headquarters.
Volkswagen’s investment builds on a $1 billion investment that Ford Motor Company announced back in 2017. Argo AI says that the culmination of this deal leads a valuation that surpasses $7 billion.
Argo AI adds that Ford and Volkswagen will hold equal stakes in Argo. The remainder of the company’s equity has been set aside for employees.
“With Ford and Volkswagen as partners, Argo technology could reach nearly every global market and be applied across multiple brands and to a variety of vehicle platforms,” Argo AI says.
“We believe this close collaboration with automakers is ideal, and we couldn’t ask for better partners than Ford and Volkswagen, who have great respect for this way of working together.”