Six months after expanding its global headquarters in the Strip District, Argo AI will be shutting down for good.
The self-driving car startup is being absorbed by its two main funders, Ford and Volkswagen, according to a report in TechCrunch.
Argo was founded in Pittsburgh in 2016 by Bryan Salesky and Pete Rander. It has been rapidly expanding ever since, fueled in part by investments by the two automakers.
“In coordination with our shareholders, the decision has been made that Argo AI will not continue on its mission as a company,” the company said in an emailed statement. “Many of the employees will receive an opportunity to continue work on automated driving technology with either Ford or Volkswagen, while employment for others will unfortunately come to an end.”
Ford has been involved with the company since 2017, when it pledged to invest $1 billion in the venture over five years.
In 2020, Argo closed on a deal with Volkswagen on a $2.6 billion investment. As part of the deal, it took over Volkswagen’s autonomous intelligent driving team.
According to the TechCrunch report, Argo employees were told at a meeting Wednesday that some would receive offers from Volkswagen or Ford.
Furthermore, all employees will receive a severance package that features insurance and two separate bonuses, including one that would become available when the deal closes with the car companies.
In addition, employees not hired by Ford or VW will receive termination and severance pay, as well as health insurance.
“We are incredibly grateful for the dedication of the Argo AI team, and so proud of our achievements together,” Salesky and Rander said in a statement. “The team consistently delivered above and beyond, and we expect to see success for everyone in whatever comes next, including the opportunities presented by Ford and VW to continue their work on automated driving technology.”
Argo has been based in the Strip since its start. It moved from the Crane Building, where it had been operating out of one floor, to the 3 Crossings complex in 2018.
It has since taken over nearly all of the space in the five-story Riverfront West building in the development. As part of the most recent expansion in April, it took over the second floor and parts of the first and third floors in the 130,500-square-foot structure.
At the time, a spokesman said that the city would “always be home to our global headquarters.”
Argo has nearly 700 employees in Pittsburgh and more than 1,800 globally.
