Mobileye buys Shashua’s Mentee Robotics for $900m

Acquisition Details - Mobileye Global Inc is acquiring Mentee Robotics for $900 million, which includes $612 million in cash and the remainder in Mobileye shares [2] - Mentee Robotics has raised over $40 million and was valued at $162 million in its latest financing round in March 2025 [2] - The acquisition has been approved by Intel, Mobileye's controlling shareholder, and was recommended by the Strategic Transactions Committee of independent directors [3][5] Financial Implications - Prof. Amnon Shashua will receive $341 million from the deal, while co-founder Prof. Shai Shalev-Shwartz will receive $118 million, both split between cash and shares [4] - Mobileye will maintain over $1 billion in cash after the transaction, despite a slight expected increase in operating expenses in 2026 by a low single-digit percentage [6] Strategic Importance - The acquisition positions Mobileye to lead in both autonomous driving and humanoid robotics, aligning with industry trends that emphasize the integration of physical AI models [9][10] - Mentee will operate as an independent unit within Mobileye, leveraging Mobileye's infrastructure to enhance software and AI hardware capabilities [6] Market Context - The deal is noted as the largest merger between an automotive company and a humanoid robotics firm, surpassing Hyundai's acquisition of Boston Dynamics in 2021 for $880 million [12] - The humanoid robotics market is gaining traction, with companies like Figure AI and Neura Robotics achieving high valuations, indicating a growing investor interest in this sector [11]