Intel is well known for their computer chips. Pretty much every PC features Intel technology, but it looks as if the company has plans to expand into the self-driving car market. On Monday, Intel purchased autonomous technology developer Mobileye for a whopping 15 Billion dollars. Mobileye is responsible for 70% of the world’s driver assistance and anti-collision systems, so this is a big name the company is adding to its holdings. This acquisition will give Intel a firm footing in the development race towards a future with autonomous driving.
A 15 billion dollar purchase is a little expensive for what’s still an emerging market, so Intel is taking a gamble on whether or not they can emerge as a leader in the field. Leadership is obviously confident they can leverage this acquisition to become a major player in the driverless car arena, but shareholders are not as confident. Intel’s stock dipped slightly after the announcement, while Mobileye’s stock reached a 1.5 year high.
Intel is known almost exclusively for their computer chips, so this huge purchase is going to be a new arena for them. In time, we’ll see whether this purchase will be a big mistake or a wise decision that will catapult Intel to the top of this fresh industry. We should have a sense of the results of the partnership relatively soon, as the two companies are collaborating to bring 40 driverless BMW cars to the road by second quarter 2017.