Pittsburgh's tech and broader business community have issued a series of statements following the news that Strip District-based Argo AI LLC, an autonomous vehicle technology company, would be shutting down.
With an employment of about 2,000 globally and roughly 800 locally, Argo was one of the region's most promising and most prominent AV companies. It received over $1 billion in funding from Ford Motor Co. and Volkswagon over the past few years, though both companies have decided to cease future investments into the firm and will now absorb its various entities. Ford also is considering taking over some of Argo's HQ space in the Strip District after noting an expressed interest in the over 100,000-square-foot facility on Railroad Street.
Below are statements from some of Pittsburgh's leaders in tech, innovation and business in response to a Pittsburgh Inno inquiry seeking comment about the news of Argo's shutdown.
Matthew Johnson-Roberson, director, Carnegie Mellon University's Robotics Institute
While it’s sad whenever a company goes out of business and people lose their jobs, I’m optimistic that Pittsburgh will continue to develop world-class robotics companies and the talented employees at Argo will hopefully find other exciting world-changing opportunities in robotics here in Pittsburgh at the wide range of companies doing novel robotics across the city in areas far beyond just autonomous driving.
Sean Luther, president and CEO, InnovatePGH
There is no hiding that this is a short-term setback to Pittsburgh’s technology economy growth. We are amid a global correction in the autonomous vehicle sector and Pittsburgh – as the birthplace of that technology – is going to feel those effects. Most importantly, we are focused on the impacted employees who have worked so hard to build an entirely new industry.
Pittsburgh has a long history of economic resilience and our tech ecosystem is well-positioned to weather this transition. A tech-based economy strategy – like Pittsburgh’s – creates a high-risk, high-reward dynamic. Developing new technology is not easy and our region must expand its support of a diverse group of founders, work to increase new company starts, and build as broad an economic future as possible.
Stefani Pashman, CEO, Allegheny Conference on Community Development
In spite of the news that Argo AI will cease operations in Pittsburgh, AV remains a viable part of the region’s robust robotics and autonomy ecosystem. Yesterday’s passage of HB 2398 by the Pennsylvania legislature, which allows companies to test driverless vehicles on our roadways, signals the Commonwealth’s commitment to the industry and the long-term growth opportunity it represents. This is a major step in making the region even more attractive to AV industry players seeking a competitive edge, including companies like Ford and VW, from whom the region would welcome investment.
Beyond AV, Pittsburgh is also advancing broader autonomous mobile opportunities – from warehousing and construction to space, rail and agricultural systems. More than 100 companies here are focused on moving these to market. We’ll leverage all this capacity as the region continues to lead in developing what’s next in autonomous mobile systems. Key to our success is talent, including individuals from Argo who will have opportunities to transition to new local careers in the industry. Pittsburgh has always been bold about taking on challenges and committing to whatever it takes to turn those into opportunities. Our robotics ecosystem is resilient, and I’m confident in its future.
Joel Reed, executive director, Pittsburgh Robotics Network
This is sobering news for many of our friends and community members, as Argo was an industry pioneer, they built an enviable culture and the company was a committed civic leader. However, our region’s robotics ecosystem has grown so dynamically, the region is capable of absorbing corrections such as these. This is the hallmark of a strong ecosystem cluster.
Pittsburgh will continue to lead the way in autonomous systems across a wide variety of markets, including mobility. There are 1,000 or more open job opportunities in Pittsburgh with more to come from the active hiring plans of our 110+ core members. The talented employees at Argo that accepted the challenge to help solve extremely difficult problems for the good of everyone will continue to drive robotics, our region, and society forward in their future roles.
Audrey Russo, president and CEO, Pittsburgh Technology Council
We've been working on autonomy for over four decades in Pittsburgh, this is not a short game. The great thing is that we've had so many people who have been exposed and immersed now in that industry. I think there's going to be applicability across so many different sectors. We've done nothing yet in terms of autonomy in health care. I mean, look at the collision that there are opportunities for with that.
I mean, let's see what's happening in the market and the market is saying, "oh, my gosh, all these companies are starting to lay off." And if you look in Seattle, companies are closing down. They're closing down. The city isn't crumbling. I realize that their density and population is different and there are lots of opportunities, but the whole economy is shifting, it's understandable for big companies, particularly auto companies, to be questioning where they're investing.
I love the fact that Argo and Aurora and all these other [AV] companies have allowed people to develop these skills. I love that people will know us for top-tier talent. There's only good that comes out of that.
