Photo courtesy of Argo AI.

Volkswagen AG’s $2.6 billion investment in Ford Motor Co.’s Argo AI self-driving unit, announced on Friday, immediately vaults the two-year-old Pittsburgh-based startup into the top ranks in the sector, reports The New York Times.

VW was investing $1 billion in cash and contributing its European self-driving unit, valued at $1.6 billion, said Argo. The deal gives Pittsburgh-startup Argo AI a valuation of just over $7 billion, one of the highest in the autonomous vehicles sector.

VW is buying the Argo shares for another $500 million from Ford, which acquired a majority stake in the Pittsburgh-based startup in 2017, reported The New York Times. “VW and Ford then will each have a minority stake, as will Argo founders Bryan Salesky and Peter Rander and a pool of Argo employees.”

Five years ago, Ford injected $1 billion into Argo.

Read the full story here in The New York Times.

NEXT staff

The staff at NEXTpittsburgh writes about the people driving change in the region and the innovative and cool things happening here.