---
title: Intel is spinning off its self-driving unit for $50B — why?
description: Intel acquired Mobileye for $15B in 2017. With markets hungry for next-gen auto tech, its spinning off the self-driving unit at a potential $50B valuation.
---

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# [Intel is spinning off its self-driving unit for $50B — why?](https://hs-sbup.thehustle.co/news/12092021-intel-mobileye)

 Written by [Trung T. Phan](https://hs-sbup.thehustle.co/news/author/trung-t-phan) | Dec 9, 2021 10:05:08 AM

Intel has taken a number of Ls in recent decades.

The chipmaker’s main competitors — Nvidia ($810B market cap) and TSMC ($630B) — have passed it ($213B) in size. More recently, Apple dropped it like a bad habit as a chip supplier.

However, the company is amid a turnaround under CEO Pat Gelsinger and just announced a big move:

#### **Intel is spinning off…**

… Mobileye — its self-driving unit — at a projected valuation of **$50B**, per [*The Wall Street Journal*](https://www.wsj.com/articles/intel-will-race-to-cash-in-its-car-chips-11638898223). If the deal is completed by mid-2022 as planned, Intel will retain a majority stake.

Founded in Israel in [1999](https://www.mobileye.com/about/mobileye-timeline/), Mobileye initially sought to reduce car accidents with collision-avoidance systems. Today, it develops chip-based cameras to “see” the road, guiding a car’s steering and braking mechanisms.

Mobileye previously went public in 2014, before Intel acquired it for **$15.3B** in 2017.

#### **Why another IPO?**

Public markets have shown significant appetite for next-gen auto stocks. Tesla is a $1T+ company while Rivian went public at [$100B](https://thehustle.co/10052021-rivian-ipo/amp/) with zero (as in $0) revenue.

Mobileye notched $326m in sales in the latest quarter. Meanwhile, semiconductor chips are estimated to rise from 4% of a car’s material costs in 2019 to 20% by 2030, per *WSJ.*

#### **Intel could use the cash**

It’s committing **$100B** to build semiconductor plants in the coming years.

A Mobileye listing may spur a rush for other autonomous vehicle tech IPOs. Two potential spinoffs come to mind: Cruise (owned by GM) and Waymo (owned by Alphabet).

For the 1st time in a long time, Intel looks to be a trailblazer.

[View full post](https://hs-sbup.thehustle.co/news/12092021-intel-mobileye)

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