>> Slow to catch on to the world's rapid move into the digital age, Intel is now looking to catch up by Mobileye, a leading provider in the emerging driverless tech industry.>> I sent you an email->> The $15 billion deal announced Monday, will give Intel, which made a name as the world's biggest provider of chips used in PCs and laptops, a firm footing in the race for autonomous driving.
Reuters San Francisco bureau chief, Peter Henderson, says the purchase is significant on many levels.>> Intel's second largest, the largest in Israeli history, is a lot of money for what is still an emerging technology. So it's a big bet by Intel, which is still really known for its focus on computers of one sort or another, in a completely different technology.
>> Mobileyes, responsible for 70% of the global market for driver assistance and anti collision systems, while Intel hopes to become the brains behind a lot of the computing finding its way into cars.>> You don't find Intel chips in that many phones or in that many tablets. And one question that investors will be asking is whether they can take advantage of the demand for car tech and turn that into another strength, or if it will just turn into kind of like another little sideshow for them.
This will be the largest acquisition of a company solely focused on driverless tech. Intel and Mobileye are already partners on a project to put 40 self driving BMWs to the test by the second half of this year, as automakers battle it out to become the first to successfully mass market the technology.
Analysts think Intel is doing the right thing, but investors are less certain. Shares of the DOW component down slightly. A different story, though, for mobilized stock, it revved up to a one and a half year high.