BMW-Mercedes Break up is bad news for Intel/Mobileye
26 June, 2020
The newly formed coalition of BMW and Mercedes-Benz could give Intel and Moblieye a dominant position in the German Automotive Driving Industry. But Mercedes decided to take a different route - with NVIDIA
Photo above: BMW impression of highway autonomous driving
Less than a year since the German Automotive giants BMW Group and Mercedes-Benz AG agreed to work together on a joint development program of next-generation technologies for driver assistance systems and automated driving, they decided to halt the cooperation and to take different paths. Last week they announced that they are putting their cooperation in automated driving “temporarily on hold”.
Intel/BMW vs Mercedes/NVIDIA
For Intel and Mobileye (owned by Intel) it was a great opportunity: They both have a long and deep cooperation with BMW Group in all aspects of Autonomous Driving, and the agreement could secure their dominant position in the German car industry. “We have systematically further developed our technology and scalable platform with partners like Intel, Mobileye, FCA and Ansys,” said Klaus Fröhlich, member of the Board of Management of BMW. “Our current technology, with extremely powerful sensors and computing power, puts us in an excellent position.”
But those hopes were short lived: “Digitalization is a major strategic pillar for Mercedes-Benz. To prepare for the future challenges of a rapidly changing environment, we are currently also sounding out other possibilities with partners outside the automotive sector,” said Markus Schäfer, Board Member of Daimler AG and Mercedes-Benz.
And it turned out that one of these “partners” is NVIDIA – a bitter competitor of Intel and Mobileye. On Tuesday, June 23, they announced a cooperation to create a revolutionary in-vehicle computing system and AI computing infrastructure. Starting in 2024, this will be rolled out across the fleet of next-generation Mercedes-Benz vehicles.
The new software-defined architecture will be built on the NVIDIA DRIVE platform and will be standard in Mercedes-Benz’s next-generation fleet. But there is a twist: NVIDIA and Mercedes-Benz will jointly develop the AI and automated vehicle applications for SAE level 2 and 3 – far below the ambitious goal of the original BMW/Mercedes coalition.