American technology giant Intel announced this Monday that it’s buying Israeli company Mobileye for $15.3 billion. With this acquisition, Intel is joining the race to produce autonomous vehicles.
This is the largest overseas acquisition in the history of Israeli companies, local media state. The company will, together with Intel’s autonomous driving department, be headquartered in Israel. It will be led by Amnon Shashua, Mobileye president and co-founder.
Both Intel and Mobileye have already cooperated with German BMW to create autonomous vehicles. They expect the merger to create a global leader in the autonomous vehicles segment. This could mean lower prices for the consumers, as well.
“The combination is expected to accelerate innovation for the automotive industry and position Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles,” it says sin the press release.
Announcing the agreement, Intel says autonomous cars have “progressed from assisted driving to being fully autonomous”, and have such become data centres on wheels. It is estimated that such vehicles will create four terabytes of data daily, by 2020.
“Intel estimates the vehicle systems, data and services market opportunity to be up to $70 billion by 2030,” the report also says.
“This acquisition is a great step forward for our shareholders, the automotive industry and consumers,” said Brian Krzanich, Intel CEO. “Intel provides critical foundational technologies for autonomous driving including plotting the car’s path and making real-time driving decisions. Mobileye brings the industry’s best automotive-grade computer vision and strong momentum with automakers and suppliers. Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers.”
Image Credit: StockStudio / Shutterstock