Intel in $15 Billion Deal for Self-Driving Tech Firm Mobileye – WSJ (Mar 13, 2017)
It’s striking to me that this piece never mentions Nvidia once, even though that chip company has been making much of the noise in the automotive space over the past year, especially when it comes to autonomous driving. That prominence is clearly a driver for this deal, with Intel signing some of its own deals but not getting nearly the buzz Nvidia has been. Mobileye, meanwhile, has been striking deals left and right with a variety of players (though it recently ended its relationship with Tesla). Just in the last three months, it’s announced partnerships with HERE and BMW over mapping, but it’s also in many of other car manufacturers’ existing cars and their autonomous plans. Given Intel’s ongoing struggles in the mobile space, its recent loss of the Microsoft server business to Qualcomm and the ARM architecture, and the ongoing stagnation in PCs, it needs some new drivers of growth, and in-car technology could provide that. Mobileye is also attractive as a business – it’s growing fast (almost 50% year on year in 2016) and profitable, with fairly high margins. So this isn’t an acquisition that will take years to contribute to Intel’s business, although its overall scale is still small. But it’s integration opportunity and the eventual opportunity to sell a joined up solution of chips and sensors which Intel will be focusing on here.
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