Intel Takes 15 Percent Stake In HERE Maps
A week after a trio of Asian investors took a piece of HERE, Intel is making a small acquisition in HERE is designed to jumpstart the chipmaker's move into driverless cars and IoT.
A week after HERE maps completed a financing with three Asian tech investors to help its expansion into China, microprocessing giant Intel is acquiring a 15 percent stake in the digital navigation provider.
The chief reasons behind Intel’s decision, which follows an expanded collaboration between Microsoft and HERE on the Internet of Things in December, is to accelerate the chipmaker’s work on driverless cars and services associated with powering IoT devices.
As Intel’s primary business powering desktop computers declines in the face of rising mobile, location, and IoT related demands from businesses and consumers, the only mystery regarding its investment in a company like HERE is what took so long.
Like Intel, HERE has been a pioneering company in the digital space that has aggressively been repositioning itself for the IoT and mobile revolution in the last two years after a period of uncertainty under its previous parent Nokia, which in Aug. 2015 sold the location and mapping provider for $3 billion to a consortium of Germany carmakers (AUDI AG, BMW AG and Daimler AG).
Along with Intel’s acquisition in HERE, the two companies also signed an agreement to partner on the research and development of a” highly scalable proof-of-concept architecture that supports real-time updates of high definition (HD) maps for highly and fully automated driving.”
Additionally, the two companies plan to jointly explore strategic opportunities that result from “enriching edge-computing devices with location data.”
“Cars are rapidly becoming some of the world’s most intelligent, connected devices,” said Brian Krzanich, Intel CEO. “We look forward to working with HERE and its automotive partners to deliver an important technology foundation for smart and connected cars of the future.”
“A real-time, self-healing and high definition representation of the physical world is critical for autonomous driving, and achieving this will require significantly more powerful and capable in-vehicle compute platforms,” said Edzard Overbeek, HERE CEO. “As a premier silicon provider, Intel can help accelerate HERE’s ambitions in this area by supporting the creation of a universal, always up-to-date digital location platform that spans the vehicle, the cloud and everything else connected.”