Driverless cars seem to have risen to the top of Intel’s agenda – it’s just spent a whopping $15.3 billion in order to acquire MobilEye and its autonomous vehicle tech.
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Mobileye develops the sensors and artificial intelligence that allow a vehicle’s on-board computer to essentially know where it is in relation to other vehicles, pedestrians and the surroundings, the key technologies needed for cars to eventually safely drive themselves.
For example, in January it emerged that the BMW 7 Series will employ Intel and Mobileye technologies during global trials starting in the United States and Europe – this was part of a broader partnership between the trio.
It seems Intel is gearing up to venture into the autonomous auto market big time.
Early this morning news broke on Haaretz.com that Intel was going to announce a takeover of Mobileye for a whopping $15.3 billion.
It’s the chipmaker’s latest expensive bet on the world beyond PCs, and another indication that Intel is determined not to miss out again on the next wave of technology. Mobileye shares trading in NY were poised to surge more than 30% on the news. “Together, we can accelerate the future of autonomous driving”.
Mobileye technology, which relies upon laser, radar and a forward-facing camera mounted behind the central rearview mirror, is used by a wide range of vehicle manufacturers, Customers include BMW, Renault Nissan, General Motors and Volvo.
In a memo to employees, Mobileye executives said Intel’s existing automated-driving efforts will be integrated into the company, based in Israel and run by its existing leaders. Both chip makers have been investing in vehicles, and Intel appears to be paying a premium to catch up and push forward with its autonomous vehicle plans.
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Mobileye, founded in 1999, specialises in systems that prevent collisions and help autonomous cars navigate, accounting for 70pc of the global market. Mobileye, which until recently powered Tesla’s Autopilot systems, released a video late past year showing an Audi driving down the street autonomously using the company’s technology. The three aim to have 40 autonomous test cars on the road by the end of this year. After closing the transaction, Intel said it expects cutting $175 million per year from the combined companies’ cost structure.
