Automakers are working hard to develop effective autonomous driving systems. The field is not just restricted to car manufacturers as one of the world’s biggest computer chip makers just entered the game. Intel announced that it has completed its purchase of Mobileye, an autonomous driving tech company that worked with Tesla, for $15 billion dollars. The deal calls for Intel to take on the majority of Mobileye’s shares.
Intel’s acquisition gets the company a seat at the table in an industry that some observers estimate at being worth $100 billion dollars within 10 years. The deal makes sense for Intel on two levels, the first is that it now gives them a complete end-to-end system for autonomous driving development from an experienced player in the industry, and Intel gets a leg up by acquiring Mobileye’s contact list on the automotive and supplier side into the fold. Mobileye currently holds about a 70% market share in the driver assistance segment globally.
Intel will integrate its automated vehicle group into the company, which will be known as Mobileye, an Intel Company, and will be run out of Israel. Intel intends the new operation to focus on developing its next generation automation systems, 5G LTE connectivity, HD mapping technology, and restructuring its data centers around the world.