DETROIT—Intel will buy Israel’s Mobileye in a deal valued at about $15 billion, instantly propelling the computer chip and technology giant to the forefront of autonomous vehicle technology.
The deal announced Monday combines Mobileye’s market-leading software that processes information from cameras and other sensors with Intel’s hardware, data centers and its own software, giving automakers a one-stop place to shop for fully autonomous systems.
“This acquisition essentially merges the intelligent eyes of the autonomous car with the intelligent brain that actually drives the car,” Intel CEO Brian Krzanich wrote in a note to employees about the acquisition.
The combination, expected to close by year’s end, will allow the companies to bring components to market faster at a lower cost, solidifying Mobileye’s leadership position, officials from the companies said.
Automakers and some technology companies are testing autonomous vehicles in California, Michigan and a few other states. Nearly all use Mobileye’s software, which reads inputs from cameras, radar, and laser sensors and makes decisions on what an autonomous car should do.
Jerusalem-based Mobileye says it has contracts with 27 different automakers. It also controls about 70 percent of the market for software that runs automatic emergency braking and semi-autonomous cruise control systems that are in cars and trucks on the road today.
