Mobileye acquires humanoid robot startup Mentee Robotics for $900M

Core Viewpoint - Mobileye is entering a new phase termed "Mobileye 3.0," focusing on robotics and a significant acquisition of Mentee Robotics for $900 million, which includes cash and stock components [2][4]. Group 1: Acquisition Details - Mobileye announced the acquisition of Mentee Robotics for approximately $900 million, consisting of about $612 million in cash and up to 26.2 million shares of common stock [2]. - The transaction has been approved by the Mobileye board and Intel, expected to close in the first quarter, and will modestly increase Mobileye's operating expenses in 2026 by a low-single-digit percentage [3]. Group 2: Strategic Implications - The acquisition is seen as a decisive step towards advancing Physical Artificial Intelligence, aiming to enhance systems that understand context and interact naturally with humans and the physical world [5]. - Mobileye's co-founder and president, Amnon Shashua, emphasized the potential to lead the evolution of physical AI across robotics and autonomous vehicles globally [4]. Group 3: Financial Outlook - Mobileye's current automotive revenue pipeline is projected to be $24.5 billion over the next eight years, reflecting a more than 40% increase compared to January 2023 [7]. - The development of humanoid robots is expected to be costly, but Mentee Robotics will benefit from Mobileye's advanced AI training infrastructure [8]. Group 4: Market Position - Mobileye recently secured a deal with a top 10 automaker to supply 9 million EyeQ6H-based Surround ADAS systems, with future deliveries estimated to exceed 19 million units [9].