As Mobileye positioned itself as a leader of autonomous driving technology and software in the autonomous car industry, it was only a matter of time before a big brand handed over an enormous amount of cash to take over.
Mobileye and Intel announced this week that the technology giant would be buying the autonomous car tech company for a massive £12 billion. The deal, which has yet to be approved, will see Intel take control of Mobileye effectively putting them directly in to partnerships with a number of important carmakers including brands under the Volkswagen Group.
Mobileye develops sensors, self-driving technology and software that allow cars to analyse the road ahead for signs of damage, predict what other cars are going to do, detect obstacles and more. The car then takes all that data and sends in to the cloud where other cars can access the same data and choose an alternate route if necessary. Intel sees this massive amount of data as their key to success in the automotive industry.
Intel’s CEO, Brian Krzanich said, “I believe that today’s announcement puts us in the driver’s seat to achieve our vision of creating the technology foundation on which the future of autonomous driving will be built.”
The price that Intel paid for Mobileye shows true faith in the hardware and software the Isreali company makes. With a trading value of around $10 billion before Intel put forward their offer of $15 billion, it’s clear that Intel didn’t want any counter-offers to take their chance at future success away from them.
“The acquisition will couple the best-in-class technologies from both companies.”
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 car.
With most automated cars using NVIDIA’s processing power for their technologies, it’s clear that this is Intel’s offensive to try and take some of the market back off their direct competitor. So far, NVIDIA hasn’t made a statement on the deal.