Argo AI CEO Brian Salesky. Photo credit: Argo AI

Following the finalization of a $2.6 billion investment from German automaker Volkswagen, Argo AI, the self-driving affiliate of U.S. automaker Ford, is now valued at $7.5 billion as confirmed on Thursday. The valuation was bestowed primarily by Volkswagen’s investment, which gave the automaker a 40% stake in Argo AI. Ford also holds an equal 40% stake in the company, with the rest held by employees and Argo’s founders. Ford had been Argo’s primary funder before Volkswagen’s $2.6 billion investment, which actually consists of $1 billion in cash as well as Volkswagen’s own self-driving unit, itself valued at $1.6 billion.

It’s such that Ford posted a $1.1 billion investment gain during the second quarter of this year thanks to Volkswagen’s investment in Argo AI. The automaker itself is facing business struggles amid a coronavirus pandemic that has generally weakened automobile sales across the US.

Argo AI  notably first hit the limelight in the self-driving scene with a $1 billion investment from Ford in 2017.