Intel just bought Russian startup Itseez to reach another stepping stone in the Internet of Things market and dive into connected markets like the automotive and its autonomous driving applications.
The San Francisco-based company Itseez is a machine learning and a computer vision firm that makes vision algorithms and software. Founded in 2005, Itseez creates implementations for embedded and specialized computer hardware and will help Intel optimize navigation for autonomous cars.
The computer vision technology is a system through which images from the real world are acquired and processed to make automated actions.
Among its products, Itseez has a line of algorithms called “advanced driver assistance systems,” that makes car hardware detect pedestrians and traffic signs and warn the driver. Itseez also produces code for robotics, smartphones, surveillance and sports analytics.
Although the financial terms of the deal were not disclosed, the price of Intel’s “restructuring” is high, the company laying off around eleven percent or 12,000 of its employees (a process started in April).
This deal announcement comes one month after the acquisition of Yogitech, an IoT-related business. Through the help of this functional safety for semiconductors specializing company, Intel sees that its technology will ensure the security of the chips powering the self-driving vehicles.
The Santa Clara Company also improved its software and chips production with the purchase of chips making for smart objects company Lantiq.
Global financial services firm, Morgan Stanley, evaluates a $507 billion gains in productivity from self-driving cars, with Americans alone spending annually around 75 billion hours driving.
Doug Davis, senior vice president, said in the Intel announcement that key ingredient firm, Itseez, will improve their “IoT roadmap” and their services offered for self-driving technology, digital security and surveillance, and much more.
To achieve business impact, experts believe you need an integrated approach, both hardware and software, and with this new software deal, Intel passes through the gates of the autonomous vehicles arena.
Intel’s transaction moves are strategic shifts from being a computer chip maker to powering the cloud computing, the IoT and data analytics offered by these devices. The cloud computing and Internet of Things deals already make 40 percent of the company’s total profit (a $2.2 billion in revenue last year alone, to be specific).
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