Intel’s Blockbuster Mobileye Acquisition Reshapes Race to Self-Driving Cars
the idea was less than four months ago in which Intel announced the idea intended to ramp up its ambitions from the realm of self-driving vehicles by targeting $250 million for investments into the nascent technology. At the time, the idea seemed like a bold move. On Monday, the chipmaker made a much bigger one.
Intel announced the idea has acquired Mobileye, a major supplier of computer vision as well as machine-learning systems for the automotive industry, for $15.3 billion. The deal reshapes the race to rake in billions by the advent of self-driving vehicles.
The two companies have worked together in separate partnerships with BMW as well as Delphi Automotive over the past year, as well as in doing so realized a closer relationship might bring complementary technologies together under one banner as well as provide a chance at major inroads into a fledgling marketplace.
— Tim Dawkins, analyst
With Intel’s processing capabilities as well as Mobileye’s ability to extract camera-based telemetry data needed for generating high-definition maps by existing collision-avoidance technologies, their combined forces provide potential customers with more pieces of a self-driving system in just one package.
in which likely will be an attractive proposition in an overall market in which Intel estimates will be worth as much as $70 billion by 2030. as well as with Mobileye currently maintaining contracts with 27 global OEMs, there’s an opportunity to quickly deliver at a worldwide scale.
For Intel, the deal helps put the company on more equal footing with competitors like Nvidia as well as Qualcomm.
“Intel was conventionally very strong from the computing as well as semiconductor industry, yet its automotive practice was lacking,” said Tim Dawkins, leader of the autonomous-vehicle practice for global automotive consulting firm SBD. “This specific acquisition jumps them up the scale as well as creates a powerhouse of data analytics as well as cloud services, as well as today This specific incredible vision intellectual property.”
Intel will shift its autonomous-car work to Israel, where Mobileye is actually headquartered. the idea’s perhaps unusual in which Intel wouldn’t look to relocate its fresh acquisition near its Silicon Valley home rather than vice versa, yet “we don’t want to lose the culture as well as fast-paced development in which Mobileye has been able to deliver,” an Intel spokesperson said.
Those quick efforts have helped Mobileye entrench itself as a market leader in providing software for vision systems found in collision-avoidance technology. in which software is actually already found in more than 15 million vehicles worldwide, as well as today Intel can process in which as well as feed the idea back to the cloud.
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“All these little pieces of intellectual property are going to become IP in which Intel will integrate into its portfolio as well as allow them to provide many more pieces of the puzzle,” Dawkins said. “from the short term, Mobileye’s conventional business won’t be going away, as well as This specific allows them to accelerate their ability to deliver a Level 4 or Level 5 vehicle. in which said, I don’t think Intel can start generating a car.”
Mobileye co-founder as well as chief technology officer Amnon Shashua will lead Intel’s autonomous-car efforts as well as report directly to Intel CEO Brian Krzanich. The deal is actually supposed to take approximately nine months to close.