Shares of Mobileye Global Inc. (NASDAQ:MBLY) experienced a significant increase in value on Wednesday following the announcement of a definitive acquisition agreement. Mobileye will acquire Mentee Robotics, a leader in AI-focused humanoid robotics, for a total consideration approximating $900 million. This sum is comprised of roughly $612 million in cash and up to 26.2 million Class A shares of Mobileye, with adjustments related to options vesting prior to the transaction's closing.
Scheduled to complete in the first quarter of 2026 pending customary regulatory approvals and fulfillment of closing conditions, the acquisition is set to merge Mobileye’s advanced artificial intelligence technologies and extensive global manufacturing capabilities with Mentee Robotics’ third-generation integrated humanoid platform and deep expertise in AI.
This strategic move is designed to position the combined entity as a leader in the domain of physical AI. These systems are characterized by their ability to comprehend contextual information, deduce intentions, interact naturally with humans, and operate safely and cost-effectively in dynamic real-world environments. The acquisition extends Mobileye’s trajectory toward integrating AI beyond its established roles in autonomous driving into broader applications involving humanoid robotics.
Mobileye’s robust progress in developing advanced autonomy and its core advanced driver-assistance systems (ADAS) technologies has significantly enlarged the company’s automotive revenue pipeline, now projected at $24.5 billion over an eight-year horizon. This anticipated revenue is more than 40% greater than the forecast made in January 2023, underscoring the accelerating demand and confidence in Mobileye’s automotive innovations.
Further strengthening its market position, Mobileye recently revealed that a U.S.-based automotive manufacturer selected Mobileye's EyeQ6H chipset to support advanced driver-assistance systems capable of hands-free driving on select highways. This development will impact millions of vehicles worldwide, validating Mobileye’s technological leadership in the driver-assistance sector.
In the third quarter, Mobileye reported revenue growth of 4% year-over-year, reaching $504 million. This outperformed analysts’ expectations, with consensus estimates positioned at $480.86 million. The company responded to this momentum by increasing its fiscal 2025 revenue guidance to a range between $1.845 billion and $1.885 billion, up from the previous forecast of $1.765 billion to $1.885 billion. These projections closely align with the analyst consensus estimate of $1.847 billion.
Following the acquisition announcement, Mobileye's shares gained upward momentum, trading up 10.59% during pre-market hours at $13.47, reflecting investor optimism about the strategic expansion into humanoid robotics and the broader implications for physical AI market leadership.
This transaction signifies a notable milestone for Mobileye as it seeks to combine its autonomous driving capabilities with humanoid robotics, hinting at integrated systems that can function effectively in diverse environments. By leveraging Mentee Robotics’ platform and AI strengths, Mobileye aims to deliver innovative solutions that transcend the traditional boundaries of AI applications.
As the transaction progresses toward expected closure in early 2026, market participants will monitor how Mobileye integrates Mentee’s technologies and expertise into its existing operations and how this aligns with broader trends in AI deployment across industries.