Intel is spending $15.3 billion to purchase Mobileye, an Israeli company that makes advanced driver assistance technology. Intel said it will pay $63.54-per-share for the company. The deal is expected to close within nine months and has been approved by both Intel’s and Mobileye’s board of directors.
Mobileye’s technology uses machine learning and data analysis to detect and identify obstacles in the road. The company’s platform is already being integrated into cars from more than 25 automakers globally and can also be sold in the aftermarket.
Intel made a big push into the automotive sector at the 2017 Consumer Electronics Show when the company announced Intel GO, an autonomous car platform that combines cars, connectivity, and the cloud. The company also announced a partnership with BMW and Mobileye in which the three companies said they would release a fleet of 40 autonomous BMW cars equipped with the Intel GO platform by year-end.
Intel today said it plans to combine its automated drive group with Mobileye’s operations, and Mobileye Co-founder, Chairman and CEO Amnon Shashua will run the group from Israel. Intel Senior Vice President Doug Davis will oversee the automated drive group’s engagements across Intel’s various other business categories.
Cars are the Future
In its fourth quarter 2016 earnings call, Intel CEO Brian Krzanich talked at length about how autonomous cars are a big focus for the company because Intel expects that all the data from cars will require data centers and mobile edge computing (MEC). In addition, autonomous driving is a one of the premiere use cases for 5G technology because the cars will need constant connectivity.
Intel has said it thinks that vehicle systems, data, and services will be a $70 billion market by 2030. In addition, the company believes that by 2020 autonomous vehicles will generate 4,000 Gb/s of data per day.
Mobileye’s shares jumped 30 percent to $61.30 in late morning U.S. trading, while Intel‘s shares were down 2 percent.