In a deal that the companies say will ‘accelerate the future of autonomous driving’, Intel and Mobileye have announced an agreement under which Intel would acquire Mobileye, a leader in advanced driver assistance systems and autonomous driving technologies.
By bringing together Mobileye’s computer vision expertise with Intel’s computing and connectivity know-how, the firms plan to “create automated driving solutions from cloud to car”, according to a statement announcing the transaction.
The combined global autonomous driving organisation, consisting of Mobileye and Intel’s Automated Driving Group, will be headquartered in Israel and led by Mobileye’s Co-Founder, Chairman and CTO, Professor Amnon Shashua.
The organisation will continue to support both companies’ existing production commitments, and build upon their relationships with automotive OEMs, suppliers and semiconductor partners to develop advanced driving assist, highly autonomous and fully autonomous driving programs.
In January, the two firms announced that they were working with BMW to put 40 autonomous vehicles on the roads by the second half of 2017.
Announcing the agreement, Intel CEO Brian Krzanich said: “This acquisition is a great step forward for our shareholders, the automotive industry and consumers.”
“Intel provides critical foundational technologies for autonomous driving including plotting the car’s path and making real-time driving decisions. Mobileye brings the industry’s best automotive-grade computer vision and strong momentum with automakers and suppliers.
“Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers.”
Mobileye Co-Founder, President and CEO Ziv Aviram said: “We expect the growth towards autonomous driving to be transformative.
“It will provide consumers with safer, more flexible, and less costly transportation options, and provide incremental business model opportunities for our automaker customers.
“By pooling together our infrastructure and resources, we can enhance and accelerate our combined know-how in the areas of mapping, virtual driving, simulators, development tool chains, hardware, data centers and high-performance computing platforms.
“Together, we will provide an attractive value proposition for the automotive industry.”
By 2020, Intel estimates that autonomous vehicles will generate 4,000 GB of data per day.
The company believes that the market opportunity from vehicle systems, data and services could reach as much as $70 billion by 2030.
The transaction will continue Intel’s strategy of investing in data-intensive market opportunities as it seeks to build on its strengths in computing and connectivity.
Full financial details of the transaction can be found here.