Mobileye is set to acquire humanoid robot startup Mentee Robotics for $900 million, signaling a significant expansion into the robotics sector. The deal, announced at CES in Las Vegas, marks Mobileye's entry into what company co-founder and president Amnon Shashua calls "Mobileye 3.0."

The acquisition agreement stipulates that Mobileye will pay approximately $612 million in cash and issue up to 26.2 million shares of common stock to acquire Mentee Robotics. Shashua, who co-founded and chairs Mentee Robotics and is a significant shareholder, reportedly recused himself from Mobileye's board consideration and approval process. The transaction, already approved by both the Mobileye board and Intel, its largest shareholder, is anticipated to finalize in the first quarter. Mobileye projects a modest increase in operating expenses in 2026, estimated to be in the low-single-digit percentage range, as a result of the acquisition.

This acquisition positions Mobileye to leverage its existing expertise in computer vision and autonomous driving technology within the burgeoning robotics market. The move reflects a growing trend of companies seeking to integrate advanced AI and automation capabilities into a wider range of applications beyond the automotive industry. The humanoid robot market, while still nascent, is attracting considerable investment and attention due to its potential to revolutionize industries such as manufacturing, logistics, and elder care.

Mobileye initially established itself as a key supplier of computer vision chips for automotive safety features and advanced driver assistance systems. The Intel subsidiary later expanded its focus to autonomous driving solutions through its proprietary chips and software. The acquisition of Mentee Robotics represents a strategic diversification, allowing Mobileye to apply its core technologies to the development of humanoid robots.

Looking ahead, the integration of Mentee Robotics is expected to enable Mobileye to develop and deploy robots capable of performing complex tasks in various environments. The company's established presence in the automotive sector, coupled with its new robotics capabilities, could create synergistic opportunities for developing advanced automation solutions across multiple industries. The market will be watching to see how Mobileye leverages its technological prowess and financial resources to establish a leading position in the rapidly evolving robotics landscape.