Ford bets $1 billion on an unknown self-driving AI company

Seemingly out of the blue, Ford announced today that it's investing $1 billion in Argo AI, a Pittsburgh-based company building self-driving technology. Ford is effectively buying the previously unknown startup, which was founded by engineers from Google and Uber. Argo AI will operate as an independent subsidiary and will focus on developing a software platform for Ford's self-driving car, which the company is targeting for 2021. Notably, Ford is also planning to license the technology out to other companies. While the extent of the deal is surprising, it makes sense for Ford, especially after GM acquired the self-driving car startup Cruise for over $1 billion last year.