Argo AI, a Pittsburgh driverless car pioneer, goes out of business

One of Pittsburgh’s autonomous vehicle companies announced Wednesday that it is shutting down.

It’s unclear how many Pittsburgh workers will be laid off, as some Argo AI employees at the Strip District-based company will be absorbed into two of Argo’s investors: Ford Motor Co. and Volkswagen AG.

In addition to its headquarters in the Strip District, Argo AI also occupied space at the Westmoreland County Community College Advanced Technology Center, a 2,800-square-foot complex in East Huntington.

“In coordination with our shareholders, the decision has been made that Argo AI will not continue on its mission as a company,” the company said in a statement. “Many of the employees will receive an opportunity to continue work on automated driving technology with either Ford or Volks­wagen, while employment for others will unfortunately come to an end.”

Argo AI was founded in 2016 with a multibillion-dollar investment from Ford and Volkswagen. By 2020, the company was valued at $7.5 billion, according to TechCrunch.

At one point the company had more than 1,700 employees, but it announced layoffs in July.

In a statement as part of Ford’s 2022 third-quarter earnings, the large automaker said Ford hoped to roll out Argo’s driverless technology in 2021 but was unable.

As a result, Ford recorded a pre-tax impairment on its investment in Argo AI, which resulted in an $827 million net loss for the third quarter.

In a joint statement, Argo AI co-founders Bryan Salesky and Dr. Peter Rander said they are proud of the achievements of the company and grateful for their team’s dedication.

Ford also said in its statement that Argo had been unable to attract new investors.

“The team consistently delivered above and beyond, and we expect to see success for everyone in whatever comes next, including the opportunities presented by Ford and VW to continue their work on automated driving technology,” the company said.