Argo AI, the self-driving startup backed by Ford and Volkswagen, is shutting down, The Verge has learned. Employees were notified that an announcement would be made late in the day Wednesday. The company, which was founded by veterans of Google and Uber's self-driving car projects, has lost the financial support of Ford and VW, a source said. And according to TechCrunch, the company's resources will be absorbed by both automakers. Argo is estimated to have around 2,000 employees, though it did announce a round of layoffs earlier this year.

Autonomous vehicle company Argo AI is shutting down. In an earnings report, Ford (a major investor in Argo AI) noted that the company is being wound down and that it will hire engineers from the startup to expand and speed up development of Level 2 and Level 3 autonomous driving systems. Ford says that it made a decision to refocus its self-driving capital spending from the Level 4 systems Argo was working on (where the vehicles handles most driving operations) to Level 2 (advanced driver assistance) and Level 3 (conditional automation) tech it's developing in-house. It noted that Argo AI wasn't able to attract new investors and that it was taking a "$2.7 billion non-cash, pretax impairment on its investment" in the company, which led to it posting an $827 million net loss for Q3. According to TechCrunch, which first reported on Argo AI's closure, Volkswagen and Ford will snap up the company's tech and other assets.

PITTSBURGH/DETROIT (Reuters) - Sky's the limit optimism about self-driving cars is giving way to tougher questions about how expensive automotive artificial intelligence will ever make a profit. Those are questions the founders of Argo AI - and automaker partners Ford Motor Co and Volkswagen AG (VOWG_p.DE) - are betting they can answer by taking a different road than more highly valued rivals. The self-driving systems developer led by Bryan Salesky, who got his start developing automated vehicles for a Defense Department sponsored competition 12 years ago, is at the center of a multibillion-dollar bet by its auto giant partners that autonomous vehicle technology must be good for more than replacing taxi drivers. "I hate the word robotaxi," Salesky said in a rare interview at Argo's Pittsburgh headquarters. "There are so many applications and businesses to be built, and (try to) understand which ones are more profitable than others."

PITTSBURGH/DETROIT (Reuters) - Sky's the limit optimism about self-driving cars is giving way to tougher questions about how expensive automotive artificial intelligence will ever make a profit. Those are questions the founders of Argo AI - and automaker partners Ford Motor Co and Volkswagen AG (VOWG_p.DE) - are betting they can answer by taking a different road than more highly valued rivals. They are steering away from building a robotaxi fleet and focusing instead on getting paid by the mile by customers that will use robot vehicles for multiple purposes, including delivering goods or transporting groups of people in vans. The self-driving systems developer led by Bryan Salesky, who got his start developing automated vehicles for a Defense Department sponsored competition 12 years ago, is at the center of a multibillion-dollar bet by its auto giant partners that autonomous vehicle technology must be good for more than replacing taxi drivers. "I hate the word robotaxi," Salesky said in a rare interview at Argo's Pittsburgh headquarters.

DETROIT - Volkswagen AG and Ford Motor Co. said on Tuesday they will join forces on commercial vans and pickups and are exploring joint development of electric and self-driving technology in moves meant to save the automakers billions of dollars. Ford and VW announced their partnership against the backdrop of the Detroit auto show. The tie-up, which starts with sales of vans and medium-sized pickups in 2022, will not involve a merger or equity stakes, the companies said. "It is no secret that our industry is undergoing fundamental change, resulting from widespread electrification, ever stricter emission regulation, digitization, the shift towards autonomous driving, and not least the changing customer preferences," Volkswagen Chief Executive Herbert Diess told reporters and analysts on a conference call. "Carmakers around the globe therefore are investing heavily to align their portfolios to future needs and accelerate their innovation cycles," he added.