Intel has announced its plans to acquire Mobileye for a sum of $15.3 billion. The Israel-based company is known for providing technology that powers autonomous vehicles. The deal between the companies is expected to close sometime towards the end of 2017. Also Read - COMPUTEX 2021: Intel launches two new 11th Gen U-series processorsAlso Read - Google gives another reason to consider Snapdragon-based Android devices
Intel is acquiring Mobileye with the aim of boosting its ambitions in the driverless car segment. Mobileye’s technology is called EyeQ, an SoC that has been adopted by 27 global auto manufacturers so far. 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, Intel s blog post reads. Also Read - Snapdragon 778G launches for premium Android smartphones with support for 144Hz display
According to a letter sent to Intel employees, Mobileye won t be integrated into Intel. Instead, it will be incorporated into Intel s Automated Driving Group (ADG), which will be headquartered in Israel, and led by Amnon Shashua, Mobileye’s co-founder, chairman and CTO. ALSO READ: Intel to help 17 startups to innovate products in India
With this acquisition, Intel will be directly competing against the likes of Nvidia and Qualcomm that too are working on developing driverless systems for global automakers. In fact, Qualcomm last year announced that it would be acquiring NXP in a $47 billion deal. It is clear that Intel is trying to avoid missing out on the next big thing as it did with the smartphone space. But in the highly competitive auto space, Intel seems to be ready to splash a lot of money to play catch up with other chipmakers.