Self-Driving Car Race: Intel Buys Mobileye for $15 Billion

Self-Driving Car Race: Intel Buys Mobileye for $15 Billion

The overall goal, Intel said, would be to "create automated driving solutions from the cloud through the network to the car".

Previous moves made by Intel in the automotive space over recent months include launching a new processor, the Atom E3900 series, focusing on in-vehicle experiences, as well as putting $250 million aside for autonomous driving investments.

Both Intel and Mobileye have been working with BMW on a fleet of self-driving vehicles due to start testing on the roads in the second half of this year. The Israeli company now utilizes STM chips for the products it provides auto manufacturers with. It's also by far the largest autonomous auto acquisition to date, and another sign that the self-driving vehicle sector looks set to explode in the coming years. That particular relationship has recently come to a close, though, since MobilEye said that Tesla was using its technology in ways it was never intended.

The largest business deal in Israeli high-tech history has been reached. The IPO came after Mobileye began to invest in driverless vehicle technology.

Mobileye was cofounded in 1999 by Amnon Shashua and Ziv Aviram. (NASDAQ: TSLA) in 2018 with the release of Mobileye's EyeQ4 sensor system. Last year, Goldman Sachs projected the market for advanced driver assistance systems and autonomous vehicles would grow from about US$3 billion in 2015 to US$96 billion in 2025 and US$290 billion in 2035.

"Mobileye brings the industry's best automotive-grade computer vision", Brian Krzanich, chief executive officer of Intel, said in a statement.

The fact that Mobileye was purchased by Intel, rather than an OEM or Tier 1 supplier, should be a good thing, according to Ben Volkow, CEO of Otonomo (another Israeli automotive tech company).

Intel today announced that it will be buying Mobileye for a total of $15.3 billion - $63.54 per share - which is around 33 percent more than what the stocks finished trading for on Friday.

Over the last two years, Intel styled itself like many other chip supplier as a growing force in self-driving cars. Even Israeli Prime Minister Benjamin Netanyahu congratulated the company: "Congratulations to Mobileye!".