Intel buys car technology from Mobileye
Self – driving cars are challenging the currently automotive industry. The next wave of technology is expected to be in the system that allows transportation to reach new levels of convenience. With Intel’s interest in technological advances, is a finalized deal with Mobileye, an Israeli company which has created autonomous driving systems.
Intel has decided to pay $63.54 per share in cash for Mobileye. The conditions of the company creates a joint partnership agreement with Intel, Mobileye and German car maker, BMW. The companies have decided to test 40 vehicles by the end of 2017 by using the new technological system. To begin, the group will be based in Israel and led by Amnon Shashua, Mobileye’s co-founder and CTO. The company will continue from their current operations of revenue, which is at $358 million, while pre-tax profit has accelerated from $79.7 to $125.4 million with the purchase.
The decision by Intel is one which enters into a quickly emerging market with other competitors. It is estimated that self – driving cars will have market worth of $70 billion by 2030 and will continuously rise, creating the future of transportation. To race into the innovation, companies such as Nissan has launched the Leaf vehicle, available by 2020. Other technology companies, such as Google, are also known for testing driverless cars for launch. While this is a new area for Intel, it is expected that the approach will assist with market growth opportunities against other technology competitors.
The technology offered through Mobileye includes a chip maker to assist with the driving cars. The cars will become autonomous, meaning they will collect data and use the information to drive between locations. On average, the cars are expected to generate 4,000 GB of data per day which will then be mined for information. With this technology, it will be possible to transform the way consumers drive. It is expected that the program will increase safety and slow down the number of accidents which happen on the road.
The possibilities through technological innovation is quickly changing the global landscape. The options for the automative industry show an emerging market through the innovation of self – driving cars. The purchase from Intel of Mobileye is one which is expanding the company while allowing the opportunities for driverless cars to accelerate onto the road.
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