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Mobileye, the company that spent decades quietly powering the brains behind other people’s cars, just announced it wants to run its own. The Intel-spinoff plans to launch a vertically integrated robotaxi service in a major US city by 2027, a move that transforms it from the behind-the-scenes chip supplier into a direct competitor with Waymo.
MBLY shares climbed roughly 4-5% in premarket trading following the June 16 announcement. Investors apparently liked what they heard: an initial fleet of approximately 100 fully driverless vehicles, with ambitions to scale that number to around 17,000 over the following five years.
From supplier to operator
Here’s the thing about Mobileye’s business until now. The company made its name selling autonomous driving technology to automakers. Its EyeQ chips and SuperVision platform sit inside vehicles built by other companies.
The new robotaxi service will be vertically integrated, meaning Mobileye plans to handle fleet operations, rider services, and mobility management all under one roof.
The company says it will continue supplying autonomous technology to automakers and mobility partners.
Mobileye was founded in 1999 in Israel and operated as an Intel subsidiary before its 2022 IPO returned it to public markets. CEO Prof. Amnon Shashua has overseen the company’s evolution from an academic research project into one of the most prominent names in advanced driver-assistance systems. The company was recently named Frost & Sullivan’s 2026 Company of the Year in the global passenger vehicle ADAS sector.
The competitive landscape just got more crowded
Mobileye’s entry into robotaxi operations puts it squarely in Waymo’s territory. Alphabet’s autonomous driving unit has been running commercial robotaxi rides in multiple US cities, building years of operational experience and regulatory relationships that newcomers don’t have.
The robotaxi market has already chewed up and spit out several ambitious entrants. Cruise, GM’s autonomous driving unit, suspended operations after a pedestrian-dragging incident in late 2023. Apple abandoned its decade-long car project. Argo AI, backed by Ford and Volkswagen, shut down entirely.
What this means for investors
The strategic pivot carries real financial implications for MBLY shareholders. Running a robotaxi fleet is a fundamentally different business than selling chips and software licenses. The capital requirements are heavier. The regulatory hurdles are city-by-city. The liability exposure is orders of magnitude larger.
The tension with existing customer relationships deserves serious attention. Automakers that rely on Mobileye’s technology may start to wonder whether their supplier is prioritizing its own fleet over their vehicles.
Investors watching this space should pay close attention to which US city Mobileye selects for its launch. Regulatory environments vary dramatically between jurisdictions, and the choice of market will signal how aggressive or conservative the company’s approach will be. The 4-5% premarket pop is a vote of confidence, but the real verdict comes when rubber meets road in 2027.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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