Announced on Monday 7 March 2017, was the acquisition of Israeli company Mobileye by the computing giant Intel. The deal is said to be worth $15.6 billion.
Intel is now set to become threatening competition within the booming autonomous driving market.
Self-Driving Cars the Next Big Thing
Intel had already missed the boat with smartphone technology. However, the next up and coming technology to change the world will be autonomous automobiles.
Mobileye gained a 6th place ranking last year in MIT Technology Review’s list of the 50 “smartest companies” in the world. The hi-tech company is fast proving itself a world leader in the autonomous driving technology market.
The company sees itself as superior in safety to its major competitor Tesla Motors. Mobileye broke ties with Tesla over anxiety it felt about Tesla cutting security corners. These sloppy safety oversights resulted in a fatal road accident that involved one of their self-driving vehicles.
Hi-Tech Pioneers Intel
Intel was one of the hi-tech pioneers of our modern era. The founders famous for their patented semiconductor innovations. Innovations that created a new world capable of personal computer ownership, that is now intrinsically woven into cyberspace.
Whilst Intel’s competitor ARM Holdings swept in to hold sway over the smartphone market, Intel now has put a heavy foot back into the hi-tech market via the purchase of Mobileye.
The autonomous driving industry is still in its infancy, and the competition between companies is hotting up. The race is to make mass produced self-driving cars available to all consumers on every income level.
Autonomous Vehicles the Future of Road Safety
Self-driving cars will be the way of the future. Companies like Mobileye have been leading the way in computer vision expertise, in order to create driving experiences that are less prone to human error.
The human driver is the biggest risk on the roads of the world. Prone to tiredness, distraction, and inebriation. Technology from Mobileye seeks to bring computer software and hardware together to create an almost perfectly safe driving experience.
Intel believes this acquisition will accelerate these innovations. The benefits will suit the companies, their clients and the consumers alike. The State of Israel also will receive a tremendous boost from this deal.
Israel Global Hi-Tech Favorite
Prime Minister Benjamin Netanyahu congratulated Mobileye yesterday in a glowing Facebook message. This purchase is the largest ever made within Israel’s high-tech industry.
Intel will move its operations to Israel, as part of this deal. Netanyahu stated that this is “dramatic proof of “.
Many other hi-tech giants have also recently acquired Israeli tech genius into their companies. Google acquired Waze for $1.1 billion and Apple bought Primesense for $300 million.
This also is not the first time that Intel has bought into Israeli hi-tech. Intel bought a personal assistant platform from Ginger Software in 2014, which works similarly to Apple’s Siri.
In 2013, Intel bought Omek Interactive for $40 million, to acquire its gesture-based technology. And last year Intel purchased Replay Technologies, an Israeli company that creates 3D videos.
Intel now has quite an advanced portfolio acquired from Israeli sourced and nurtured hi-tech talent. Mobileye is set to be the crown jewel of Israeli tech talent in the Intel crown.
Mobileye’s Industry Prestige
Mobileye has notably close relationships with 27 car manufacturers, that Intel will now be able to take advantage of. There are 10 production programs that Mobileye run that include prestigious car manufacturers such as Audi and BMW.
Just earlier this year, Intel and Mobileye collaborated with BMW in testing 40 self-driving cars. The reputation of this Israeli firm will catapult Intel to the head of the competition in the self-driving car market.
The range of technologies and services from Mobileye are impressive. Their computer vision expertise includes front and rear-facing camera technologies, mapping, and laser sensor fusion.
Mobileye also claims that by 2018 they will begin crowdsourcing for data to develop high definition maps. Now with Intel at the helm, the future really does appear to contain cars that will literally be computers on wheels.
According to Brian Krzanich, the CEO of Intel, the autonomous automobile industry will be worth approximately $70 billion by 2030.
With the inclusion of Israel’s hi-tech talent in the mix, the young Jewish State is set to receive a large section of that pie. Israel is clearly set to become a world leader in technological innovation.