Intel to acquire Mobileye for $15.3bn, looks at automotive leadership

Intel to acquire Mobileye for $15.3bn, looks at automotive leadership

Intel to acquire Mobileye for $15.3bn, looks at automotive leadership

Doug Davis, general manager of Intel's Automated Driving Group, will oversee the combined organization and report to Shashua. The Israeli company now utilizes STM chips for the products it provides auto manufacturers with. The acquisition deal is worth $15.3 billion, making it the biggest deal in the world for a company that only focuses on autonomous driving. The BMW Group, Intel and Mobileye announced on January 4, 2017 that they would test a fleet of about 40 autonomous vehicles on the roads by the second half of 2017. The firm had previously developed the Tesla's semi-autonomous autopilot but stopped doing business with Elon Musk's firm after the two disagreed over how the system was being used.

"Congratulations to Mobileye! Israeli genius, Israeli pride", Prime Minister Benjamin Netanyahu wrote on Twitter after the deal's announcement.

The technology that Intel and MobilEye are working on won't just be limited to BMW cars, though.

It was founded by Amnon Shashua in 1999 to help lower motorist fatalities and injuries. "Therefore, Mobileye understood that a single-lens camera could be the primary sensor to enable autonomous driving".

He called it "a great step forward for our shareholders, the automotive industry and consumers", adding: "Together, we can accelerate the future of autonomous driving". Intel said it expects to leverage Mobileye's auto computer vision capabilities and ties to the auto industry to advance "cloud-to-car" platforms.

Mobileye is a popular name when it comes to computer vision technology.

"Intel is not looking to have their people come in and run Mobileye", said Ziv Aviram, Mobileye's other founder and chief executive, in a letter to employees. It is said that the deal is made "in an effort to boost the chipmaker's position in the autonomous vehicle market". Even Israeli Prime Minister Benjamin Netanyahu congratulated the company: "Congratulations to Mobileye!".

Aviram told Netanyahu that a global development center will be established in Israel and "will be responsible all the worldwide activity of Intel's autonomous cars", the statement from the premier's office said.

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