Ford-Backed Self-Driving Startup Argo AI Mulling IPO This Year

(Bloomberg) — Argo AI, the self-driving startup backed by Ford Motor Co. and Volkswagen AG, is contemplating going public as quickly as this yr, in accordance with folks conversant in its plans.

Bryan Salesky, Argo’s co-founder, advised staff in an all-hands assembly April 1 the corporate is seeking to increase its funding because it comes nearer to commercializing its self-driving know-how, stated the folks, who requested to not be recognized revealing inside discussions. Ford, which invested $1 billion in Argo in 2017, plans to roll out robo-taxis and driverless supply pods in 2022.

Argo had a market worth of greater than $7 billion when Volkswagen accomplished its $2.6 billion funding within the firm final July. VW, the world’s top-selling automaker, plans to place self-driving autos on the highway later this decade.

As the know-how comes nearer to actuality, main gamers, reminiscent of Alphabet Inc.’s Waymo, General Motor Co.’s Cruise and Amazon.com-backed Aurora Innovation Inc., are anticipated to think about public choices to satisfy rising financing wants. Chinese autonomous truck startup TuSimple Inc. simply revealed its intention to promote shares in an IPO. Driverless truck startup Plus is in talks with particular objective acquisition firms for a merger, a route a number of electrical car corporations have used to go public.

For Argo, the timing is correct as a result of it’s within the superior levels of creating its know-how, with checks operating in six cities together with Miami, a brand new lidar steering system and a transparent path to commercialization by means of partnerships with two of the world’s largest automakers, the folks stated.

The startup remains to be understanding specifics with its automotive companions and it’s not clear if will do a standard IPO or merge with a SPAC, the folks stated. And plans might slip into subsequent yr, the folks stated.

‘Financial Runway’

“We have a solid financial runway due to investments from our partners Ford and Volkswagen, but we have always said that we’re open to additional partnerships or investment opportunities to further accelerate our growth,” Argo stated in a press release.

The Information reported earlier on Argo’s plans to go public.

Salesky, who helped begin the Google self-driving automobile challenge that turned Waymo, co-founded Argo in late 2016 with Peter Rander, an alumni of Uber Technologies Inc.’s autonomous auto operations. Salesky has expressed curiosity in tying up with an Asian automaker to present Argo attain into all main areas.

“We’ve got a strong global player, strong in Europe with VW and Ford being strong in the U.S.,” Salesky stated in 2019 because the VW deal was being introduced. “A third player is absolutely possible.”

Argo’s workforce has grown to 1,300 and it now has operations within the U.S. and Germany.

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