Volkswagen AG’s $2.6 billion investment in Ford Motor Co.’s Argo AI self-driving unit, announced on Friday, immediately vaults the two-year-old Pittsburgh-based startup into the top ranks in the sector, reports The New York Times.
VW was investing $1 billion in cash and contributing its European self-driving unit, valued at $1.6 billion, said Argo. The deal gives Pittsburgh-startup Argo AI a valuation of just over $7 billion, one of the highest in the autonomous vehicles sector.
VW is buying the Argo shares for another $500 million from Ford, which acquired a majority stake in the Pittsburgh-based startup in 2017, reported The New York Times. “VW and Ford then will each have a minority stake, as will Argo founders Bryan Salesky and Peter Rander and a pool of Argo employees.”
Five years ago, Ford injected $1 billion into Argo.