Mobileye CEO Amnon Shashua image: Intel

Intel’s Mobileye has announced a collaboration with Chinese electric car maker NIO on self-driving technology. The collaboration entails the development of a self-driving system by NIO on the foundation of Mobileye’s own self-driving kit, with plans to mass-deploy the system beginning in China. The partnership also involves the purchase of specially configured NIO vehicles by Mobileye, marking NIO as the first large-scale automaker to have signed on to supply vehicles to the Intel-owned company. With such deal implying a potential increase in vehicle sales, NIO, whose stock has fallen more than 70% since it went public, shot up 38% during trading on news of its Intel partnership.

As part of their planned partnership, Mobileye will provide NIO with the design of a self-driving system built on the Mobileye AV Series, a custom kit comprised of a custom chip, hardware, and mapping and safety software developed by Mobileye. NIO will then build upon Mobileye’s system to come up with its own self-driving solution, and further integrate it into its own vehicles. In addition, the Chinese EV maker will develop custom vehicles to be supplied to Mobileye to serve as robotaxis for the Intel-owned company’s planned robotaxi service, which it’s aiming to kick off next year.

NIO, although struggling with disappointing sales, has some foothold in China, the world’s largest EV market. It’s no surprise a company like Mobileye, which is aiming for its own robotaxi service, chose NIO as a partner, as the company serves as a viable path into the Chinese market.

“We are thrilled by the promise and potential of collaborating with NIO on electric autonomous vehicles, for both consumers and robotaxi fleets. We value the opportunity to bring greater road safety to China and other markets through our efforts, and look forward to NIO’s support as Mobileye builds a transformational mobility service across the globe.” Mobileye CEO Amnon Shashua said in a statement.

“NIO aspires to be the next-generation car company and a user enterprise. We see electric vehicles as the starting point and the fabric that connects and strengthens communities. Working with Mobileye to enhance the safety and capabilities of our vehicles is in line with our vision to offer premium smart electric vehicles and shape a joyful lifestyle.” NIO’s founder and CEO William Li added.