In a statement announcing its intent to purchase Mobileye, Intel said that the acquisition will merge "Intel's high-performance computing and connectivity expertise and Mobileye's leading computer vision expertise to create automated driving solutions from the cloud through the network to the vehicle".
PC gamers love the combination of Intel CPUs and Nvidia GPUs, but the two companies are actually bitter rivals in several markets.
"Mobileye brings the industry's best automotive-grade computer vision", Brian Krzanich, chief executive officer of Intel, said in a statement. At the time, the companies said they would make a common technology platform available to other automakers.
The technology that Intel and MobilEye are working on won't just be limited to BMW cars, though. Automakers, Krzanich said, want lower costs, faster times to market and the ability to get an autonomous driving system in one place.
Intel today announced that it will be buying Mobileye for a total of $15.3 billion - $63.54 per share - which is around 33 percent more than what the stocks finished trading for on Friday.
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Intel aims to leverage Mobileye in order to grow to become an integral player in the hardware and software powering the transition to driverless cars, as part of its wider Internet of Things strategy.
Intel sees autonomous driving as another outlet for its high-performance computing, by virtue of the large amounts of sensor data genereated by modern cars.
Mobileye is the central player in Israel's burgeoning automotive technology sector, which hosts development centers for no less than four major auto companies.
Intel Corporation is purchasing Mobileye, an Israeli technology company that develops vision-based advanced driver assistance systems providing warnings for collision prevention and mitigation, for an estimated $15 billion. The company's offerings are already inside several semi-autonomous vehicles, including Tesla cars. It will be interesting to see if this will change into the future as Intel pushes to rapidly expand Mobileye's presence in this market. The two companies announced plans to put 40 autonomous BMW cars on American and European roads by the end of this year.
Mobileye NV (NYSE:MBLY) was downgraded by stock analysts at Evercore ISI to an "outperform" rating in a research report issued on Monday.