Most importantly, a test with 40 self-driving cars, in partnership with BMW, will continue as scheduled, meaning that this technology is only going to get closer.
"By pooling together our infrastructure and resources, we can enhance and accelerate our combined know-how in the areas of mapping, virtual driving, simulators, development tool chains, hardware, data centres and high-performance computing platforms".
However, price tag aside, it immediately allows Intel to step into the big league in the autonomous driving market. Intel SVP Doug Davis is overseeing how the two companies will coordinate together. The Israeli company now utilizes STM chips for the products it provides auto manufacturers with.
Mobileye, in case you are not familiar with it, is best known for supplying the technology (like sensors and cameras) used in Tesla's first-generation Autopilot.
Israeli Prime Minister Benjamin Netanyahu and Transportation Minister Yisrael Katz also welcomed the deal.
Mobileye, a Jerusalem-based company, was founded in 1999 by Prof. Mobileye also has deals with other auto companies including Audi.
Intel was driven to buy the company due to it being a market leader in computer visions systems seen as critical for autonomous cars.
Intel is making a huge investment in autonomous driving. Our strategy is to make Intel the driving force of the data revolution across every technology and every industry.
Mobileye is a popular name when it comes to computer vision technology.
Mobileye and Intel are now working together, along with German carmaker BMW and 27 other automotive brands, to put 40 test vehicles on the road in the second half of this year.
PC gamers love the combination of Intel CPUs and Nvidia GPUs, but the two companies are actually bitter rivals in several markets.
It's also the biggest purchase of a company exclusively focsed on the autonmous driving sector. The move immediately gives Intel a strong foothold in the automotive industry, with Mobileye's systems already accounting for 70% of the global market for advanced driver-assistance and anti-collision systems. He also said he and Chief Technology Officer Amnon Shashua will be "running Mobileye just as we have done in the past".