Mobileye Bets on Physical AI with $900M Mentee Robotics Deal
The acquisition signals a major expansion beyond automotive for the ADAS leader, targeting the emerging market for humanoid robots in manufacturing and logistics.
Mobileye Global Inc. is making a significant leap from the highway to the factory floor, announcing a definitive agreement to acquire humanoid robotics firm Mentee Robotics in a deal valued at approximately $900 million. The move signals a bold strategic expansion for the automotive technology leader, leveraging its deep expertise in computer vision and AI to enter the nascent but rapidly growing field of physical AI.
Shares of Mobileye (NASDAQ: MBLY) jumped on the news, climbing nearly 6% to $12.18 in afternoon trading as investors reacted to the company's ambitious push into a new, multi-billion-dollar addressable market. The acquisition, announced at the CES technology conference in Las Vegas, diversifies Mobileye's business beyond its core focus on advanced driver-assistance systems (ADAS) and autonomous driving technology.
The transaction consists of approximately $612 million in cash and up to 26.2 million shares of Mobileye's Class A common stock. It brings a vertically integrated humanoid robotics platform and a wealth of AI talent into the Mobileye fold, which currently boasts a market capitalization of over $9.3 billion.
A Strategic Pivot to General-Purpose Robotics
For years, Mobileye has been synonymous with automotive safety and autonomy. This acquisition represents a pivotal moment, applying its world-class AI capabilities to general-purpose machines that can operate in complex, dynamic human environments. Mentee Robotics, which will operate as an independent unit within Mobileye, has developed a sophisticated humanoid robot designed to learn and perform tasks through a novel 'human-to-robot mentoring' system.
According to the company's official announcement, Mentee's AI architecture can transform a single demonstration from a person into millions of virtual repetitions in a simulated environment. This allows its robots to learn new skills with a high degree of dexterity and nuance, bypassing the traditional bottleneck of collecting massive real-world training data.
"This acquisition is a strategic investment in our future," a company spokesperson stated. "We see the field of physical AI, where intelligent machines can interact with and manipulate the physical world, as a natural extension of our mission to make technology that improves safety and efficiency."
The connection between the two companies is deep; Mentee Robotics was co-founded by Professor Amnon Shashua, who is also the President and CEO of Mobileye. This existing relationship and shared technological vision are expected to streamline the integration process.
Market Opportunity and Future Roadmap
The push into humanoid robotics places Mobileye in a competitive field alongside other tech giants and specialized startups all vying to create autonomous systems for logistics, manufacturing, and eventually, domestic assistance. Mobileye believes its established global production expertise can provide a critical advantage in scaling manufacturing and deployment.
The combined entity is wasting no time, with plans to accelerate Mentee’s go-to-market strategy. The first on-site proof-of-concept deployments with customers in the manufacturing sector are anticipated in 2026. According to materials released by the company, series production and broader commercialization are targeted for 2028.
Wall Street analysts, who currently have an average 12-month price target of $18.90 on Mobileye stock, will be closely watching the execution of this new venture. While the company's core automotive segment has faced cyclical headwinds, the robotics acquisition provides a compelling long-term growth narrative that diversifies its revenue streams away from the auto industry.
The deal has already received approval from Mobileye’s Board of Directors and its largest shareholder, Intel Corp. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions.