Intel Is Paying an Awful Lot for Mobileye

Intel Is Paying an Awful Lot for Mobileye

Intel said: "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".

"It's an area where the company (Intel) has had very little presence - the automotive market, and so this is a tremendous opportunity for them to get into a market that has significant growth opportunities", said Betsy Van Hees, an analyst at Loop Capital Markets who has a "buy" rating on Intel shares. Amnon Shashua, Mobileye's co-founder, chairman, and CTO. That market, including systems, data and services, could be worth as much as $70 billion by 2030, according to Intel.

Explaining the line of reasoning behind the transaction, Krzanich said: "Mobileye brings the industry's best automotive-grade computer vision and strong momentum with automakers and suppliers".

More news: Pregnant Ciara Involved in Car Accident in LA

BMW AG said in January that it will have 40 autonomous test vehicles on roads later this year, a development forged in part through a technology partnership with Intel and Mobileye. The company was working with them over computer vision for autonomous driving technology. That is about a 33% premium over Mobileye's stock price at the close of business on Friday, March 10. Intel must have liked its work because it has chose to acquire MobilEye for $15.3 billion. Intel has worked increasingly with Mobileye, announcing plans past year to deploy 40 autonomous cars as part of trials with BMW. After teaming up with various companies, including auto makers, to develop and promote solutions for autonomous vehicles, it's now taking things to the next level by acquiring Mobileye.

Mobileye was founded in 1999 with a mission to help cut the number of injuries and fatalities caused by vehicles. "Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers", said Brian Krzanich, Intel CEO. Nvidia is betting that graphics chips will be the central driver for the artificial intelligence software that will drive cars without human intervention, while Qualcomm is set to become the world's biggest automotive chip maker after it announced plans to buy NXP Semiconductors for $47 billion.

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