Volkswagen announced on Thursday that it is spending 2.4 billion euros ($2.3 billion) to set up a joint venture with Chinese auto tech unicorn Horizon Robotics. The deal is scheduled to be completed in the first half of 2023, giving Cariad, a software subsidiary of the German automaker, a controlling stake of 60% in the venture. Formed in 2015 by Yu Kai, a former chief scientist at Baidu, Horizon Robotics is currently valued at $8 billion and is backed by auto majors including BYD, SAIC, and Great Wall Motor. [Volkswagen statement]