Intel's self-driving cars testing in Jerusalem

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Mobileye, Intel's self-driving vehicle technology unit based in Israel, has reportedly signed a contract with a European auto manufacturer to supply its autonomous driving technology for 8 million cars.

The terms of the deal, and the identity of the automaker in question, have not been disclosed.

This deal marks the intended acceleration of carmakers and suppliers in introducing automated driving tasks like emergency braking and highway driving for generating revenue.

The advanced driver-assisted systems to be outfitted to the cars will be based on Intel's EyeQ5 chip, due out 2021 and created to be capable of fully autonomous driving. Only then will the tests begin on advanced assisted systems. That chip is an upgrade to its EyeQ4 chip that's going to be released in the coming weeks.

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The coming future will see the automakers' vehicle models having conditional and partial automation, where the drivers will require staying alert.

Intel (INTC) and Mobileye are competing with several rival chip and machine vision system manufacturers, including Nvidia Corp.

Mobileye, bought by Intel a year ago for $15.3 billion, says there are some 27 million cars on the road from 25 automakers that use some sort of driver assistance system and Mobileye has a market share of more than 70 percent.

"By the end of 2019, we expect over 100,000 Level 3 cars with Mobileye installed", Shashua told Reuters. "Level 3" cars are self-driving, but can be manually driven if the self-driving system fails. The Level 3 technology is set to start rolling out by the next year, and Mobileye is working with many automakers to make it a success. It's now working with a number of automakers - General Motors, Nissan, Audi, BMW, Honda and Fiat Chrysler among them - on next-gen Level 3 driverless auto tech, to debut next year. Each model has 12 small cameras mounted along with four EyeQ4 chips in the trunk. In a test witnessed by Reuters reporters, these cars were able to travel through Jerusalem's streets in the middle of the day without driver interference. Amnon Shashua, the co-founder and CEO of Mobileye, said the company has started testing its self-driving cars on highways around Jerusalem in recent months.

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