Anonymous sources have revealed that Intel Corporation (NASDAQ:INTC) has joined forces with Mobileye NV to create self-driving car technology to be used by BMW. Senior executives of the three companies will meet on Friday to discuss the roadmap for driverless-vehicle initiative.
Gearing up for driverless vehicles
BMW has been a client of Mobileye, which is a leader in cameras and software segment. BMW is not the only client for Mobileye, which serves both General Motors Company (NYSE:GM) and Tesla Motors Inc (NASDAQ:TSLA) as well. Staging driverless cars is complex, which cannot be completed without the help of a dependable artificial intelligence combined with powerful processing.
Here comes role of Intel in play, which found its niche in auto industry through producing entertainment and information system for vehicles. But, it cannot be denied that Intel has lot of room to cover given the market share of its competitors such as NXP Semiconductors NV (NASDAQ:NXPI) and Infineon Technologies AG (ADR) (OTCMKTS:IFNNY), which own a major chunk of the auto industry.
BMW’s 2021 model
Mobileye will take charge of developing technology to load autonomous vehicles with reflexes that can move without the help of driver. Vision of driverless cars took shape after Alphabet Inc (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL) and Tesla ventured into the space.
Meanwhile, market experts are projecting that the driverless car could hit the road by as early as next decade, based on BMW’s June statement that hinted at launching similar model in 2021. Evercore financial analyst, Arndt Ellinghorst, believes that Intel is roped in to design central processor chip, which will coordinate with numerous components of car in synchrony with Mobileye’s software. However, detailed official terms of this three-way collaboration are awaited.
Citi’s research note speculates that the trio will focus on Mobileye’s fifth generation chips, named as EyeQ5. This chip is already seeing interest from many takers, including Volkswagen AG (ADR)(OTCMKTS:VLKAY), General Motors and Volkswagen AG (ADR) (OTCMKTS:VLKAY).