Intel Corp Acquires Mobileye For $15.3 Billion To Make Driverless Cars

Well, it is quite clear that Tesla is already in the market for driverless cars. The best chipset and processor companies in the world like Nvidia and Qualcomm are also in competition to develop components for self-driving cars. Now, Intel makes a grand entry into the market. Intel Corp bought the Israeli autonomous vehicle technology firm Mobileye with $15.3 billion on 13th February.

The deal brings Intel in direct competition with Nvidia and Qualcomm. With the acquisition of Mobileye Intel came into the front ranks of the automotive suppliers for driverless cars.With the craze for driverless cars continually rising, the question that comes here is, will Intel be able to offer the fully serving components safely in the next few years?

The investment analysts also raised their concerns regarding the acquisition of Intel and Mobileye. One this is for sure, Intel is not an experienced player when it comes to self-driving cars. One good news is, Intel has invested in few startup companies which develop components for self-driving cars.

What exactly will Mobileye bring for driverless cars?

Mobileye will include cameras, the sensor chips, roadway mappings, machine learning, data fusion, cloud software and in-car networking. It is an excellent opportunity for Intel to get into the market of driverless cars. The technology of Mobileye is critical, and the price is fair too. It is a strategic move from Intel though it is far outside of their core business. The market of driverless cars is gradually becoming pretty crowded. The tech giants like Alphabet Inc’s Waymo and Chinese tech giant Baidu Inc.

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Intel is going to offer an unusual autonomy that integrates their automated driving group with Mobileye’s operations. Mobileye supplies integrated chips, software, and cameras for the driverless cars for more than two dozen vehicle manufacturers. It was also the early supplier of vision systems to Tesla. Mobileye and Intel already teamed with German automaker BMW on a project for bringing a fleet of 40 driverless cars for test on the road. They will conduct the test by the second half of this year.

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The other competitors

Mobileye also teamed with Intel for the fifth gen chips to use in fully automated vehicles. The fifth gen chips will release by 2021. Last year October we saw Qualcomm announcing a $47 billion deal to acquire NXP. NXP is the largest automotive chip supplier in the world. It has put a lot of pressure on other chipmakers like Intel, Nvidia, and Mobileye.

The deal between Qualcomm and NXP will create industry’s best sensors, networking and any other elements of autonomous driving. It is pretty clear that a very tough competition is coming in the field of driverless cars. Intel also said it would spend more than $250 million in next two years for developing driverless cars.

Here is what Mobileye Co-founder says, “together, we will provide an attractive value proposition for the automotive industry.”

We expect the growth towards autonomous driving to be transformative. It will also provide consumers with safer, more flexible, and less costly transportation options, and provide incremental business model opportunities for our automaker customers. As cars progress from assisted driving to fully autonomous, they are increasingly becoming data centers on wheels.” Intel is expecting by 2020 the driverless cars will create 4000GB of data per day.

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