Intel U.S. agreed to buy Israeli autonomous-driving technology company Mobileye with a value of $14.7 billion. The new technology could thrust the U.S. chipmaker into direct competition with rivals Nvidia Corp. and Qualcomm Inc. to develop driverless systems and components for global automakers.
The acquisition of Mobileye could propel the world's largest computer chipmaker into the front ranks of automotive suppliers at a time when Intel has been downplaying its core semiconductor business. It also promises to escalate the arms race among the world's carmakers and suppliers to acquire autonomous vehicle technology, and could fuel already-overheated valuations of self-driving startups.
The acquisition of Mobileye could dramatically expand Intel's potential role in self-driving technology, with a broad portfolio that includes cameras, sensor chips, in-car networking, roadway mapping, machine learning, cloud software and data fusion and management.
