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Volkswagen completes $ 2.6 billion investment in self-driving startup Argo AI



FILE PHOTO – Signage can be seen at a Volkswagen dealer in London, Britain, March 30, 2016. REUTERS / Toby Melville

(Reuters) ̵

1; German automaker Volkswagen AG (VOWG_p.DE) has completed its $ 2.6 billion investment in Argo AI, the Pittsburgh-based self-driving startup published in a blog post on Tuesday.

Argo was founded by Bryan Salesky and Peter Rander in 2016 and is now jointly controlled by VW and Ford Motor Co, who made their first investment in Argo shortly after they were founded.

Details of the VW investment, which does not include an agreement to purchase Argo shares worth $ 500 million from Ford, were released last July.

According to Salesky, the VW agreement includes the transfer of the Munich-based Autonomous Intelligent Driving Unit to Argo, which will increase Argo’s employment to over 1,000.

Last week, VW announced that its board of directors had approved several projects in a multi-billion dollar alliance with Ford, which was also announced last July.

Ford founded Ford Autonomous Vehicles LLC in 2018 and promised to invest $ 4 billion by 2023. The company had been looking for external investors to share the rising costs of developing autonomous vehicles.

Reporting by Paul Lienert in Detroit; Edited by Nick Zieminski

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