By Mike Colias
Volkswagen AG has agreed to invest around $2.6 billion in Ford Motor Co.'s autonomous-vehicle partner, Argo AI, in a deal that values the startup at $7 billion, according to people familiar with the matter.
Ford has been the majority shareholder of Pittsburgh-based Argo since early 2017, when it agreed to invest $1 billion.
Under the agreement with Volkswagen, to be announced Friday, Argo would develop autonomous-driving technology for VW and eventually supply systems for commercial use, while continuing its development work with Ford, the people said.
Write to Mike Colias at Mike.Colias@wsj.com