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 it calls "Mobileye 3.0," a strategic move 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 up to 26.2 million shares of common stock for Mentee Robotics. Amnon Shashua, co-founder and president of Mobileye, also co-founded Mentee Robotics and serves as its chairman and a significant shareholder. To avoid conflicts of interest, Shashua recused himself from the Mobileye board's consideration and approval of the transaction. The Mobileye board and Intel, Mobileye's largest shareholder, have approved the deal, which is expected to close in the first quarter. Mobileye anticipates a modest increase in operating expenses in 2026, estimated to be a low-single-digit percentage, as a result of the acquisition.

This acquisition positions Mobileye to leverage its expertise in computer vision and autonomous systems in the burgeoning robotics market. Mentee Robotics, founded in 2022, is focused on developing advanced humanoid robots, a field that is attracting increasing investment and attention as companies seek to automate tasks across various industries. Mobileye's established presence in the automotive industry, supplying computer vision chips for advanced driver-assistance systems (ADAS) and autonomous driving, provides a strong foundation for its expansion into robotics. The company's existing technology and infrastructure can be adapted and applied to the development of humanoid robots, potentially accelerating innovation and deployment.

Mobileye's evolution from a supplier of ADAS technology to a player in the autonomous driving space, and now to robotics, reflects a broader trend in the technology industry. Companies are increasingly seeking to diversify their offerings and leverage their core competencies in adjacent markets. The acquisition of Mentee Robotics allows Mobileye to tap into the growing demand for automation solutions and capitalize on the potential of humanoid robots to transform industries such as manufacturing, logistics, and healthcare.

Looking ahead, Mobileye's success in the robotics market will depend on its ability to integrate Mentee Robotics' technology and talent effectively and to develop compelling applications for its humanoid robots. The company's existing relationships with automakers could also provide opportunities to explore the use of robots in automotive manufacturing and other related areas. The move into robotics represents a significant strategic shift for Mobileye, with the potential to drive future growth and innovation.