Intel Corporation (NASDAQ:INTC) continues to focus on new markets as it positions itself for growth in 2017. The firm has acquired a 15% ownership stake in HERE, a digital maps and location-based service software developer. The software is used for autonomous driving and the Internet of Things (IoT).
The chip maker plans to work with HERE on building maps for automated cars, as well as to explore opportunities in IoT and machine learning.
Under the deal which is expected to close in the first quarter, HERE will add Intel’s nominee to its supervisory board of directors.
New Maps To Make Autonomous Driving Safe
The chip giant is betting on self-driving vehicle systems. The firm recently announced that it will spend $250 million to build self-driving vehicle systems.
Intel and HERE agreed to collaborate on the research and development of a highly scalable proof-of-concept architecture that supports real-time updates of high definition maps for highly and fully automated driving.
“Cars are rapidly becoming some of the world’s most intelligent, connected devices,” Intel CEO Brian Krzanich said in a statement. Intel wants to work “with HERE and its automotive partners to deliver an important technology foundation for smart and connected cars of the future,” Krzanich added.
The companies plan to develop mapping systems that can pinpoint a vehicle’s location “within centimeters,” as a way to improve autonomous driving systems, The Verge reported. They plan to develop the proof-of-concept architecture to help make autonomous driving as safe and predictable as possible.
HERE HD Live Map, HERE’s cloud service supporting vehicle automation, allows vehicles to “see” obstacles beyond their immediate field of vision and receive real-time updates as environments change due to traffic, road conditions and other factors.
The chip maker will work with AUDI AG, BMW AG and Daimler AG – which own stakes in HERE – to test the new technology. Intel said that it plans to make the mapping service “broadly available across the automotive industry as a seamlessly integrated offering that simplifies and shortens time of development for automakers.”
Under the partnership, Intel Corporation (NASDAQ:INTC) will play role on the hardware side. The company can provide a secure, flexible and scalable technology foundation for the future of autonomous driving from the vehicle to the data center. Its assets include high-performance and flexible, in-vehicle computing; robust cloud and machine-learning solutions; and high-speed wireless connectivity.
The next generation location services, resulted from Intel-HERE collaboration, can fuel the continued growth of cloud computing and the Internet of Things, Intel said in a statement.
Intel Buying Stake in HERE
HERE a private company which was started by Nokia. The mapping service was sold last year to Audi, BMW and Mercedes for more $3 billion.
HERE provides embedded navigation solutions. The mapping service, in a partnership with Intel, wants to offer automakers a global solution that reduces both complexity and long-term development costs. The companies also plan to explore other potential collaborative opportunities spanning next-generation cloud analytics, IoT applications, machine learning, and augmented reality, etc.
Under the terms of the deal, Intel nominate Doug Davis, senior vice president and general manager of the automated driving group at Intel, to HERE’s supervisory board of directors.
Subject to regulatory approvals, the transaction is expected to close in the first quarter. Financial terms of the deal were not disclosed.
Intel is set on conquering markets that promise to become great cash mines in the future. Its Data Center business is expected to yield powerful growth. The chip maker is also gunning to secure a stronghold in the development of Artificial Intelligence (AI) technology. The company’s upcoming Kaby Lake processors can boost artificial intelligence market domination.