Intel has announced that it will purchase autonomous vehicle technology company Mobileye for $15.3 billion.
Under the agreement, a special subsidiary of Intel will begin a tender offer to acquire all Mobileye shares for $63.54 each, all in cash. Intel says the deal will allow it to combine its computing and connectivity expertise and Mobileye’s leading computer vision expertise for future semi-autonomous and fully-autonomous vehicles.
In a letter to employees, Intel chief executive Brian Krzanich said “The acquisition of Mobileye brings together the assets of Intel’s Xeon processors, FPGAs, 3D XPoint memory, and 5G modems with the world leader in automotive computer vision. This acquisition essentially merges the intelligent eyes of the autonomous car with the intelligent brain that actually drives the car.”
Mobileye once provided the autonomous hardware for Tesla but split last year. Nevertheless, the company is working with numerous established automakers and startups to bring its technology to the streets, including BMW, General Motors and Lucid.
Intel expects the vehicle systems, data and services market to be valued at up to $70 billion by 2030.