Intel to buy Israeli technology firm Mobileye for $15 billion

Image credit Mobileye

Krzanich said in a release that by working together, the companies will be able to "accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers". In other words, Intel has positioned itself to provide autonomous driving services connecting the vehicle to the cloud that are expected to "transform" the autonomous driving market.

The driverless tech scene is about to get a lot more interesting soon, as Intel just grabbed Mobileye in a surprise acquisition that could spell trouble for Tesla and Nvidia. It's just another example of how companies view autonomous driving tech.

With its planned purchase of Mobileye (MBLY), Intel (INTC) aims to become a one-stop shop for automated driving systems for carmakers. "In the years to come this deal may be read as the point when autonomous technology came of age". The Israel-based company is known for providing technology that powers autonomous vehicles. The BMW Group, Intel and Mobileye announced on January 4, 2017 that they would test a fleet of about 40 autonomous vehicles on the roads by the second half of 2017.

"The acquisition will couple the best-in-class technologies from both companies, including Intel's high-performance computing and connectivity expertise and Mobileye's leading computer vision expertise to create automated driving solutions from the cloud through the network to the auto", says Intel in its announcement of the deal.

Intel has been working officially with Mobileye since last year and earlier this year, with BMW, started to test 40 self-driving cars equipped with the two companies' technology.

"Basically, Intel has now inherited Mobileye's problems, and we don't think Intel has the capacity to fix Mobileye's issues", he said in a note. This slide show will examine the acquisition, discuss the potential of the self-driving vehicle market and whether this deal will start a race among computer companies and auto makers to acquire as much technology as possible in this burgeoning industry.

Vehicle companies have begun a gradual marriage with tech companies as greater importance has been placed on autonomous driving.

Other high-profile deals in autonomous-vehicle technology include General Motors' purchase of San Francisco-based Cruise Automation for more than $1 billion previous year, and Ford Motor's $1 billion investment in Argo AI, an artificial-intelligence startup in Pittsburgh founded by former Google and Uber self-driving leaders. Mobileye was founded in 1999 by Ziv Aviram and Amnon Shashua, who will continue to run the company.

Intel's shares fell about 2 percent Monday to $35.16 after the company disclosed the deal.



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