Recently, two major technology driven companies joined force in hopes to conquer the self-driving car market together.
Intel, which is an American multinational corporation and technology company, recently purchased a self-driving tech supplier called Mobileye. Intel paid over 15 billion dollars for Mobileye, making it the biggest-ever acquisition of an Israeli tech company.
Intel CEO, Brian Krzanich spoke out saying, “This acquisition is a great step forward for our shareholders, the automotive industry, and consumers. Together, we (Intel and Mobileye) can accelerate the future of autonomous driving.”
Many people believe that the deal made between the two companies was largely motivated by money. Intel is predicted to save about $175 million a year by 2019 because of tax advantages that they’ll receive from purchasing Mobileye.
Mobileye offers plenty of car related technology and services, such as sensor function, mapping, laser-based sensors, cameras, and so forth. Through purchasing Mobileye, Intel is expected to get better access to what goes into autonomous driving systems as well as better relationships with automakers.
Intel’s autonomous driving division will be based in Israel and led by Mobileye’s CTO and co-founder, Professor Amnon Shashua.
Although this deal is new, the two companies have been working together for some time now. In fact, they tested 40 self-driving cars equipped with both of their technologies earlier this year.
Mobileye is also expected to continue to work with pre-existing partners, and Sashua said that many of Mobileye’s existing customers see this partnership as an advantage.