Intel Buys Mobileye: Driverless Car Technology Firm:
Mobileye, a Jerusalem-based Israeli company founded in 1999, sells vision-based integrated cameras, hardware and software for driver-assist systems for self driving cars to more than a dozen automobile companies. It said its revenue tripled to more than $358m, while pre-tax profit jumped from $79.7m to $125.4m.
Intel is directly competing with the likes of Google, Uber, Nvidia, Baidu and many other firms.
Betsy Van Hees, analyst at Loop Capital Markets, said Intel had very little presence in the automotive market. “So this is a tremendous opportunity for them to get into a market that has significant growth opportunities”.
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Betsy Van Hees, analyst at Loop Capital Markets, said Intel had very little presence in the automotive market, “so this is a tremendous opportunity for them to get into a market that has significant growth opportunities”.
Intel buys driverless car company Mobileye for $15bn in record-breaking deal
Intel’s acquisition is pricey which will put forward it automotive market. Last year, Goldman Sachs, the American multinational finance company, projected the market for advanced driver assistance systems and autonomous vehicles. These would grow from about $3 billion in 2015 to $96 billion in 2025. And $290 billion in 2035. According to Bain & Company, a consulting firm, this sector is estimated to be worth $25 billion annually by 2025.
“Scale is going to win in this market,” Brian Krzanich, Intel’s chief executive, told investors on Monday. “I don’t believe that every carmaker can invest to do independent development into autonomous cars.”
Hence, Intel had invested in about half a dozen of startups in automotive sector. It developing various components from self driving systems, from robotics to sensors. As it looking in new technology areas from tough competition to chip business from Qualcomm, Mediatek, AMD. Last year, the company announced that it was laying off 12,000 people, or 11 percent of its global workforce, as demand for personal computers continued to decline.
But now Intel and Mobileye teamed up with BMW, the german automotive company testing 40 driverless vehicles on road second half of this year. Although, integrated with fifth-generation smart chips that will used in fully autonomous vehicles. But these smart cars are scheduled for delivery around 2021.