Self-driving startup Argo AI will shut down operations and its workers and elements will probably be absorbed by its foremost backers, Ford Motor Co. and Volkswagen Group, TechCrunch reported on Wednesday, citing folks conversant in the matter.

Argo workers had been advised that a few of them would obtain provides from the 2 automakers, TechCrunch stated, including that it was not clear what number of workers would go to Ford, Volkswagen, or lose their jobs.

Argo AI declined to remark.

Ford didn’t instantly reply to a Reuters request for remark, however in its third-quarter report stated Argo AI “had been unable to draw new traders.”

Ford stated it recorded a $2.7 billion non-cash, pretax impairment on its funding in Argo AI, which led to it taking a $827 million internet loss for the thrid quarter.

Argo AI in July stated it had laid off about 150 workers because it made changes to its enterprise plans. It nonetheless had over 2,000 workers globally after the job cuts.

Began in 2016, Pittsburgh-based Argo AI was creating the know-how behind driverless automobiles. It had raised a minimum of $3.6 billion in investments, primarily from Ford and Volkswagen.

Volkswagen stated it’s now not investing in Argo AI and plans to focus its automated driving efforts on its present partnerships with Bosch and Horizon Robotics in China.

Volkswagen industrial automobiles will pursue a partnership with a brand new, soon-to-be named accomplice, the carmaker stated in its assertion, with prototypes for its electrical van, the ID. Buzz, already in check section.

The primary outcomes from the partnership between Volkswagen’s software program unit Cariad and Bosch, introduced in January this 12 months, are deliberate for 2023, the assertion stated.

Volkswagen disclosed a $2.6 billion funding in Argo AI, the Pittsburgh-based self-driving startup, in June 2020.

The funding meant the startup was collectively managed by the German carmaker and Ford, which made an preliminary funding in Argo AI shortly after it was based.

“Volkswagen is working with Argo AI to allow additional working alternatives for workers and proceed creating the promising tasks on autonomous driving. All additional cooperations with Ford stay unchanged,” Volkswagen’s assertion stated.

Automotive Information contributed to this report.