Mobileye is making a significant move into the robotics sector with the acquisition of Mentee Robotics, a startup specializing in humanoid robots, for $900 million. The deal, announced at CES in Las Vegas, signals Mobileye's expansion beyond its core business of automotive safety and autonomous driving technologies.

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. Amnon Shashua, co-founder and president of Mobileye, also co-founded and chairs Mentee Robotics and is a significant shareholder. He recused himself from the Mobileye board's consideration and approval of the transaction. The deal, already approved by both the Mobileye board and Intel, its largest shareholder, is expected to finalize in the first quarter. Mobileye anticipates 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 places Mobileye directly into the burgeoning robotics market, specifically targeting the development of humanoid robots. This move, dubbed "Mobileye 3.0" by Shashua, suggests a strategic shift towards diversifying the company's technological portfolio and revenue streams. The robotics market is seeing increased investment and innovation, with applications ranging from manufacturing and logistics to elder care and customer service. Mobileye's entry, backed by its established expertise in computer vision and AI, could accelerate the development and deployment of advanced robotic solutions.

Mobileye built its reputation and financial success by providing automakers with computer vision chips crucial for automotive safety features and advanced driver-assistance systems (ADAS). The Intel subsidiary later expanded into autonomous driving, leveraging its chip technology and software capabilities. Mentee Robotics, founded in 2022, brings expertise in humanoid robot design and development, complementing Mobileye's existing strengths.

Looking ahead, the acquisition of Mentee Robotics positions Mobileye to capitalize on the growing demand for robotics solutions across various industries. By integrating Mentee's humanoid robot technology with Mobileye's computer vision and AI expertise, the company aims to create robots capable of performing complex tasks in dynamic environments. The success of this venture will depend on Mobileye's ability to effectively integrate Mentee's technology and navigate the challenges of the robotics market, including competition from established players and the need for continuous innovation.