Volkswagen AG will invest $2.6 billion in Pittsburgh-based Argo AI by committing $1 billion in funding and contributing its Autonomous Intelligent Driving company, valued at $1.6 billion. The culmination of this deal leads a valuation that exceeds $7 billion for the self-driving startup.
Volkswagen’s strength in Europe and other global markets, as well its experience with electric vehicles, will help position Argo AI as a technology platform company, expand the potential geography for deployment, and will further fuel its product development.
Volkswagen becomes the second investor in the company, which was formed more than two years ago. Ford Motor Co. and Volkswagen will hold equal stakes in Argo AI; the remainder of the company’s equity has been set aside for employees.
AID’s Munich-based team will become the company’s European headquarters. The additional 200 employees bring Argo AI’s headcount to more than 700.
This new partnership builds on a $1 billion investment from Ford, which has given Argo AI the financial resources to allow its team to focus, grow its talent and progress quickly.