Argo AI folded after Amazon pulled out of lifeline investment

Amazon was prepared to invest several hundred million dollars into Argo last spring, sources told Bloomberg. Amazon planned to use Argo’s self-driving technology to automate some of the electric delivery vans.

The online retailer emerged as a potential savior for Argo AI, before the deal fell apart because of a sputtering economy, concerns about control and flagging faith in fully autonomous driving. Amazon was prepared to invest several hundred million dollars into Argo last spring, according to people familiar with the matter who disclosed Amazon’s involvement for the first time. Amazon planned to use Argo’s self-driving technology to automate some of the electric delivery vans it’s buying from Rivian setting up a test fleet in multiple U.S. cities. Argo’s key backers Ford and VW Group were eager to attract a third partner to Argo to help shoulder the high cost of developing self-driving technology, the people said. Recently departed VW CEO Herbert Diess even traveled to the U.S. to meet with Amazon co-founder Jeff Bezos earlier this year to discuss the deal. With the Amazon deal dead, Argo had to lay off the 150 employees it hired to work on the new business. The shifting economy has taken a toll as well on Amazon, which is planning some 10,000 layoffs of its own. (Source Automotive News)