Argo AI Gets $2.6 Billion Investment

Volkswagen Buys Into Pittsburgh Start-Up

Joe DeStio
July 12, 2019 - 4:05 pm
A $2.6 billion investment will be made by Volkswagen to Pittsburgh start-up Argo AI.

Joe DeStio

Categories: 

PITTSBURGH (Newsradio 1020 KDKA) – A $2.6 billion investment will be made by Volkswagen to Pittsburgh start-up Argo AI. The autonomous vehicle company based in the Strip District previously had a $1 billion investment from Ford.

“Pittsburgh is currently our largest office and also out headquarters,” said Argo CEO Bryan Salesky. “This additional funding helps make sure that we’re going to be around for years to come.”

The deal, announced Friday, gives Argo two built-in customers for its self-driving technology. It also gives Argo a foothold in the European market where VW already has its own autonomous vehicle development. That company, valued at $1.6 billion with 200 employees, will be melded into Argo and is part of the overall investment.

Salesky came out of Carnegie Mellon University’s robotics institute and Argo recently announced a $15 million commitment to establish an on-campus research hub.

“We’re going to make sure we have a pipeline of students and qualified people graduating. And the exciting part is with this funding it makes sure that we can hire these folks and keep them in Pittsburgh,” said Salesky.

Volkswagen and Ford will also cooperate on development of electric vehicles. Ford is expected to use VW’s platform which has been in development for years.

As for the future of autonomous vehicles, Salesky says we are still several years away.  He expects it will be on selected streets in selected cities. “It won’t initially be on a consumer vehicle. It will be on a vehicle you can hail as part of, say, a ride sharing service.”

___
Follow KDKA Radio: Facebook | Twitter | Instagram
Listen to KDKA Radio on the Radio.com App - Download Now