Intel Buys Car Computer Vision Specialist Mobileye
- Author: Todd Kelly Mar 14, 2017,
Mar 14, 2017, 0:14
The U.S. -based chip giant said it hopes the move will create a auto combining Intel's cloud technology and Mobileye's autonomous driving systems. The total value of the deal is now estimated at $15.3 billion.
Intel has announced it is to acquire autonomous driving systems provider Mobileye for $15.3 billion (£12.5bn) as it aims for market leadership in the connected vehicle space. Mobileye brings the industry's best automotive-grade computer vision and strong momentum with automakers and suppliers. "Combined, we believe we will have the technology and the talent to deliver a leading cloud-to-car (end-to-end) solution for autonomous driving", explains Intel, in the release.
Mobileye CTO Amnon Shashua claimed that Tesla was "pushing the envelope in terms of safety" as Hotz explained, but Tesla issued a scathing response alleging that Tesla already planned to discontinue Mobileye's system and that the Israeli company used some questionable methods to force Tesla to use their system for future generations of the Autopilot. Mobileye, which until recently powered Tesla's Autopilot systems, released a video late previous year showing an Audi driving down the street autonomously using the company's technology. With those companies under its belt, MobilEye's sensor technology, and its own microprocessor expertise, Intel could be poised to offer a fully-integrated autonomous driving solution to carmakers.
The company said only at the end of last year that it planned to spend $250m on self-driving tech in the next two years, so Mobileye's $15bn acquisition represents a major step up in its ambitions.
United States chipmaker Intel agreed to buy Israeli driverless car-technology firm Mobileye for $15.3 billion on Monday, positioning itself for a dominant role in the fast-moving autonomous-driving sector.
Intel expects the all-cash deal to close within nine months.
"The ADG team includes systems engineers, simulators, mapping ingestion infrastructure and cloud computing with data centers, vehicle build engineers, and access to a pool of software engineers that will become part of our team".
On the news of the deal - the biggest ever acquisition of an Israeli tech company - shares in Mobileye rose nearly 35% in premarket trading.
Intel, based in Santa Clara, Calif., is the world's largest semiconductor chip maker based on revenue of $59.4 billion in 2016, according to its annual financial report.