23 August 2026

Ford and Volkswagen backed self-driving startup Argo AI shut down

• Argo AI, valued at $7 billion and backed by Ford and Volkswagen, closed in October 2022 after failing to commercialize Level 4 autonomous driving technology (vehicles that can drive themselves without human input).
• The company underestimated how much time and money would be needed to turn working technology into a business that made money.
• Argo lacked the financial resources of competitors like Waymo, which is backed by Google's parent company Alphabet.

How it was covered

MindstreamAdam Biddlecombe

Argo AI, backed by Ford and Volkswagen with a $7B valuation, shut down in October 2022 after failing to commercialize Level 4 autonomous driving technology. The newsletter argues Argo underestimated both the time and capital required to turn demonstrated technology into a profitable business, and lacked the deep pockets of competitors like Waymo backed by Google.