BMW plans to deploy 40 self-driving vehicles for tests in the US and Europe by the second half of this year. The German car manufacturer made the announcement jointly with Intel and the Israeli-based auto firm Mobileye at CES in Las Vegas. The BMW 7 Series will be used as the platform for Intel processor and Mobileye computer vision technology during the trials. BMW plans to deploy 40 self-driving vehicles for tests in the US and Europe. BMW will be responsible for driving control, safety and the production of the car platform.
Intel CEO Brian Krzanich, BMW CEO Harald Krueger, and Mobileye CTO and cofounder Amnon Shashua pose after a press conference in Munich on July 1, 2016. Intel started making lots of noise about the autonomous car market last year. But it's a long slog getting into a market like automotive, where it can take years to get designed into a vehicle. On Monday, the chip giant announced it would just buy its way into the market with a $15.3 billion acquisition of Mobileye, a leading provider of advanced driver assistant systems based in Israel. A massive consolidation spree is sweeping the semiconductor industry.
A new press release reports, "Intel Corporation and Mobileye N.V. today announced a definitive agreement under which Intel would acquire Mobileye, a global leader in the development of computer vision and machine learning, data analysis, localization and mapping for advanced driver assistance systems and autonomous driving. Pursuant to the agreement, a subsidiary of Intel will commence a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash, representing an equity value of approximately $15.3 billion and an enterprise value of $14.7 billion." The release continues, "The combination is expected to accelerate innovation for the automotive industry and position Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles. Intel estimates the vehicle systems, data and services market opportunity to be up to $70 billion by 2030. This transaction extends Intel's strategy to invest in data-intensive market opportunities that build on the company's strengths in computing and connectivity from the cloud, through the network, to the device."
Intel's Mobileye unit has been awarded a contract to supply millions of autonomous vehicles. According to Reuters, eight million cars will be equipped with self-driving technologies and shipped off to an automaker stationed in Europe. Financial terms of the deal were not disclosed. Erez Dagan, senior vice president for advanced development and strategy at Mobileye told the publication that the contract will come into play in 2021 when Intel's Mobileye EyeQ5 chip is ready. The processor is an upgrade on the upcoming EyeQ4, which is due to be rolled out in the coming weeks.
Intel's autonomous driving unit just landed a big contract. Israeli tech firm Mobileye has signed a deal to supply eight million cars at a European automaker with its self-driving technologies, a company official told Reuters. Financial terms of the deal and the identity of the automaker were not revealed. Israeli tech firm Mobileye has signed a deal to supply eight million cars at a European automaker with its self-driving technologies. The deal marks one of the largest yet for Mobileye and is a sign of how carmakers and suppliers are accelerating the introduction of features that automate certain driving tasks, like highway driving and emergency braking, to generate revenue.