Updated: Feb 24, 2023
Mobileye, the maker of the EyeQ “system on chips” which are used to interpret images taken from cameras onboard cars for applications such as ADAS and Autonomous Driving, has returned to the public markets five years after it was bought by US chipmaking giant Intel for $16 bn. The implied valuation of Mobileye at the IPO price was $17 bn much lower than the initial target of a $50bn valuation given last year by Intel.
Mobileye is planning on building a full stack of both hardware and software technologies which could be used to power the self-driving cars of the future which include plans to develop their own advanced Radar and LiDAR (Light Detection and Ranging). Currently, they envision that some cars capable of level 4 autonomy may be on public roads in 2025 and beyond.
The IPO comes at a time when other companies involved in developing self-driving technologies appear to be struggling with producing robust systems to meet the vast challenges involved.
Argo AI an autonomous vehicle start-up which was backed by both Ford and Volkswagen and had $1 bn in funding announced it was shutting down. LiDAR companies Velodyne and Ouster have announced a merger after both have seen their valuations tumble over 85% in the last 12-months. At the same time, California has approved Waymo’s deployment of driverless car and charge for the usage of its autonomous vehicles in San Francisco. It is becoming increasingly important to select the right technologies in the self-driving car’s race.
Updated: Feb 24, 2023
Baidu has secured permits to operate China’s first-ever fully driverless licensed robotaxis. The company which is the operator of the most widely used search engine in China said it will be able to operate its Apollo Go cars without a safety supervisor on board in the Chinese cities of Wuhan and Chongqing. Winning the permit has given Baidu an edge over its rivals, including Pony.ai, WeRide and AutoX, which are all also racing to develop fully autonomous driving systems.
The services will be offered using a fleet of five 5th generation Apollo taxis in each city. Apart from the radar, Lidar, and other cameras onboard, the vehicles are also equipped with V2X (vehicle to everything) technology. This V2X technology uses 5G communication to allow the car to access information from its environment as well as other vehicles and infrastructure or even be remotely piloted, if necessary.
As is normally the case with these autonomous driving programs, there are several limitations on when and where they can be deployed. In Wuhan, the services will be available from 9 am to 5 pm in the five square miles (13 km2) area of the Wuhan Economic & Technological Development Zone. In Chongqing, the services will be available from 9:30 am to 4:30 pm in the 11.5 sq. mile (30 km2) area of Yongchuan District.
Beijing has also granted Baidu the permit to run its driverless robotaxi services. However, Baidu could only offer free rides to people as part of its R&D efforts and gauge public response to its technology. More importantly, the Beijing permission comes with a rider, a human operator is seated in the front seat of the vehicle. Beijing regulators in July allowed Baidu and Pony.AI to collect fees for driverless rides within a 60 km2 suburban zone of the capital city with the restriction above in place.
Updated: Feb 24, 2023
Amazon announced the acquisition of robotic vacuum manufacturer iRobot for around $61 per share or $1.7 bn including the net debt of the company – this would be a 22% premium to the closing price the day before the deal was announced. We believe counteroffers for iRobot from other parties are unlikely as we enter a period of higher global consumer caution and iRobot like many other companies has been struggling with supply chain and inflationary cost pressures, particularly compared to its Chinese peers. The deal is seen by many as a further strategic move by Amazon to increase its exposure to the smart-home automation market.
The acquisition is likely to receive a high level of scrutiny from regulators as some see this as a further incursion of surveillance by Amazon into people’s homes. iRobot’s Roomba range of robotic vacuum cleaners navigates by building up a virtual map of their surroundings, a data set which can be used to potentially drive further smart home related sales as well as increase the intelligence of other connected smart home devices.
The acquisition will be Amazon’s third largest to date and adds to a number of smart home related purchases made in the past few years including video door-bell maker Ring, and wi-fi company Eero.
If the deal closes, Roomba will be the third “mobile” system that Amazon could deploy in people’s homes along with their Astro robot designed for home monitoring and the indoor Ring Always Home Camera which is essentially a security camera attached to a flying indoor drone. The deal may also pave the way for iRobot’s Terra lawn mowing robot to finally come to market after being indefinitely delayed by the company a couple of years ago.