Intel Corp.-owned self-driving vehicle technology company Mobileye Global Inc. is one step closer to going public, filing the paperwork for a listing on the Nasdaq with the U.S. Securities and Exchange Commission on Friday and announcing it Oct. 3.

Intel announced in December that it planned to float Mobileye with a reported valuation north of $50 billion. The initial paperwork was filed with the SEC in March, where the figure of $50 billion-plus was mentioned once again.

Forward six months and equity markets have plunged amid 40-year high inflation, a possible recession and the ongoing war in Ukraine. Consequently, Intel is now reported to be chasing a valuation on Mobileye of $30 billion, some $20 billion less than previously reported figures.

CNBC reported that Mobileye had $879 million in sales in 2019, $967 million in 2020 and $1.39 billion last year. Over the same time period, losses have shrunk from $328 million to $75 million per year. Revenue for the first half of this year rose 21% from a year ago, to $754 million.

Founded in 1999, Mobileye develops technology that powers camera systems used by autonomous and semi-autonomous vehicles. The company leverages leading technology, including artificial intelligence, deep learning and crowdsourcing to create hardware and software for use by automakers.

More than 50 global automakers use Mobileye’s technology in advanced driver assistance systems and autonomous vehicles. Notable customers include BMW AG, Audi AG, Volkswagen AG, Nissan Motor Co. Ltd., Honda Motor Co. Ltd. and General Motors Co. Mobileye has been described in the past as being Tesla’s main rival when it comes to self-driving vehicle technology.

Intel acquired Mobileye for $15.3 billion in March 2017 as part of a push into new markets amid what was described at the time as confronting “ongoing stagnation in the personal computer business that served as its cash cow for decades.”

The diversification strategy that led to Intel acquiring Mobileye is no longer since Pat Gelsinger was appointed chief executive officer in February 2021. One of the first things Gelsinger announced is that he would shift Intel’s focus back to fundamentals — making computer chips. Mobileye doesn’t use Intel chips in its products.

The IPO of Mobileye will not see Intel exit the automotive market, however, with plans announced in February that would see the company manufacture custom processors for automakers through its Intel Foundry Services business. Along with maintaining a stake in the company, Intel also plans to continue partnering with Mobileye on vehicle-related initiatives post-IPO.

The sale of Mobileye is not Intel’s first divestiture in recent times. It sold its NAND flash memory business to South Korean firm SK Hynic Inc. for $9 billion in October 2020.

Photo: Intel