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Autonomous startup Argo AI virtually acquired a lifeline from Amazon however a possible deal fell aside earlier than it might ever materialize.
It’s understood that Amazon contemplated investing a number of hundred million {dollars} into Argo AI final spring with the hope that it might use the corporate’s expertise to automate the electrical supply vans that it’s buying from Rivian. Moreover, Ford and Volkswagen who backed Argo AI had been apparently involved in a 3rd accomplice that may assist with the immense prices concerned in self-driving applied sciences.
The deal was mentioned by ex-VW chief government Herbert Diess and Amazon boss Jeff Bezos earlier this 12 months. Nevertheless, Ford and VW apparently turned involved that the retail big might divert Argo’s expertise and a spotlight. Amazon was additionally delay by the excessive price of Argo’s expertise, Bloomberg stories.
Learn: Argo AI Shutting Down As Ford Shifts Focus From Stage 4 To Stage 2/3 Semi-Autonomous Driving Tech
Argo AI and Amazon launched a pilot program in Miami in 2019 the place a fleet of Ford Fusion fashions with Argo’s self-driving system would drive pre-determined routes from an Amazon warehouse to remaining locations. Argo AI was so assured that Amazon would make an funding that it employed roughly 150 individuals to work on outfitting the Rivian vans with its autonomous methods, stories state.
Nevertheless, the continued warfare in Ukraine and spiking inflation is believed to have contributed to the deal not eventuating. Moreover, Herbert Diess was ousted as VW chief government only a few months in the past having been instrumental in VW’s funding in Argo AI and its pursuit of Amazon.
Bloomberg notes that VW thought of an Eleventh-hour bailout of Argo within the fall when Ford stated it could not fund the corporate. The German automaker thought of taking on Argo AI however has as an alternative determined to speculate $2.3 billion into an autonomous driving three way partnership with China’s Horizon Robotics Inc.
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