key highlights "Argo AI, a once-prominent self-driving car company, shut down in October 2022 after facing challenges in developing both the technology and a profitable business model for autonomous vehicles.
Argo AI was initially backed by NAME_1 Motor Company with a $1 billion investment in 2017, and later NAME_2 joined the venture with a $2.6 billion investment in 2019. The company was valued at $12.4 billion at its peak.
The failure of Argo AI was attributed to difficulties on the business side rather than the technology itself. Many other self-driving car projects have also faced obstacles in securing financing and developing a sustainable business model.
The hype around self-driving cars has diminished since 2017, and the challenges in developing the technology have made investors more cautious.
Companies like Uber, Lyft, and other mobility businesses have been struggling to turn a profit despite significant investments. The complexities of operating and maintaining self-driving car fleets contribute to the financial challenges.
NAME_1 has shifted its focus to Level 2 and Level 3 driving systems in the near term, while NAME_2 continues its partnerships with Mobileye and Horizon Robotics for autonomous driving projects.
Waymo, GM Cruise, Baidu, and Mobileye are among the companies still actively pursuing Level 4 autonomy, while Tesla's self-driving technology is considered less advanced.
The profitability of self-driving car services remains uncertain, and reaching profitability would require a significant number of revenue-generating miles. The competition is expected to narrow down to a few major players in the future." Do not say the word "side" in the response
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