Self-driving startup Argo AI will shut down operations and its employees and parts will be absorbed by its main backers, Ford Motor Co. and Volkswagen Group, TechCrunch reported on Wednesday, citing people familiar with the matter.
Argo employees were told that some of them would receive offers from the two automakers, TechCrunch said, adding that it was not clear how many employees would go to Ford, Volkswagen, or lose their jobs.
Argo AI declined to comment.
Ford did not immediately respond to a Reuters request for comment, but in its third-quarter report said Argo AI "had been unable to attract new investors."
Ford said it recorded a $2.7 billion non-cash, pretax impairment on its investment in Argo AI, which led to it taking a $827 million net loss for the third quarter.
Argo AI in July said it had laid off about 150 employees as it made adjustments to its business plans. It still had over 2,000 employees globally after the job cuts.
Started in 2016, Pittsburgh-based Argo AI was developing the technology behind driverless vehicles. It had raised at least $3.6 billion in investments, mainly from Ford and Volkswagen.