Volkswagen AG’s next step into autonomous driving looks like it could be disappointing. But it’s also probably the best option the German giant has if it’s going to become a serious player in driverless technology.

The world’s largest automaker is in talks to invest in Argo AI at a $4 billion valuation, the automated car company backed by Ford Motor Co., Bloomberg News reported. The deal could be finalized in the next few months…

And as much as Argo doesn’t have the same aura as a Cruise or Waymo, it has advantages over much of the rest of the industry. Chief Executive Officer Bryan Salesky was an early employee of what was then known as the Google self-driving car project, and has now evolved into Waymo; and Argo’s Pittsburgh headquarters means it’s well placed to hoover up top artificial intelligence and robotics experts from Carnegie Mellon University. Its access to talent is enviable.
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