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.

Fully autonomous vehicles will take at least another five years to perfect, with the cost and complexity of rolling out the technology globally serving to undermine the business case, Volkswagen's head of commercial vehicles said. Autonomous cars require high-tech infrastructure, hugely expensive lidar and radar systems, as well as pricey deals with cloud computing and mapping providers, VW's Thomas Sedran told Reuters on the sidelines of the Geneva motor show [on March 5]. "It will take another five years to develop the technology to achieve higher levels of autonomy. Can you see a business case which justifies these overheads for this period of time? It's just too expensive," Sedran said.