What products does Mobileye develop?
Intel paid $15.3 billion to purchase Mobileye in March 2017. The two companies had worked together, along with BMW on a project called the iNEXT, an autonomous vehicle set to launch in 2021. Intel has made other investments in the driverless space. It took a 15 percent stake in Here, a mapping company, in January 2017. In 2016, Intel also acquired a computer vision company called Itseez and Yogitech which develop safety technologies for semiconductors. Intel also created a technology group dedicated to driverless technology called the Automated Driving Group (ADG) in November 2016.
How much did Intel pay for Mobileye?
Intel believes it can pair Mobileye’s technology Intel processors to sell driverless car systems.This could give Intel a new avenue for chip growth, as PC sales decline. Only 5 percent of the company’s revenues currently come from its Internet of Things group (IOTG) — which includes chips for the transportation market. The company and its CEO see potential growth in that division as automakers predict driverless cars will be hitting the roads by 2020.
Why did Intel purchase Mobileye?
BMW partnered with Mobileye to develop new technology for the automaker that could put self-driving cars on the road by around 2021. The alliance highlights a shift in the dynamics of research and development in the car industry. Until recently, car manufacturers typically developed their own proprietary technology and dictated volume and prices with suppliers. But as cars become smarter, manufacturers are embracing partnerships with technology firms using open technology standards, seeking to harness their expertise in areas including machine learning and mapping.