Mobileye, the Jerusalem-based developer of advanced vision systems and autonomous driving technology, has agreed to acquire fellow Israeli startup Mentee Robotics in a transaction valued at approximately $900 million.
Under the terms of the deal, Mobileye will acquire Mentee for $612 million in cash and up to 26.2 million Mobileye shares. Mentee will continue to operate as an independent unit within Mobileye.
Both companies were co-founded by Professor Amnon Shashua, who is Mobileye’s chief executive, though the company said he did not participate in the approval process for the transaction.
“The AI that we are mostly using starts in the digital space and ends in the digital space, and the difference with physical AI like autonomous driving is that the AI is in the decision-making in the real world,” said Shashua. “Mobileye wants to expand its scope to all aspects of physical AI because there are a lot of synergies in terms of the technology layers.”
What You Need to Know
The acquisition comes at a time when Mobileye is seeking new avenues for growth following a period of restructuring, layoffs and slowing demand in parts of the autonomous driving market.
In December, Mobileye laid off about 200 employees, roughly five per cent of its global workforce with the cuts mainly affecting its Israeli operations. The company has also shut down some business units as demand for certain products weakened and revenues came under pressure.
Speaking at the Consumer Electronics Show (CES) in Las Vegas, Shashua said the acquisition of Mentee represents the addition of a new long-term growth engine.
He added that autonomous driving and humanoid robotics face similar challenges: operating safely and reliably in environments designed for humans, and making complex real-world decisions under uncertainty.
From Autonomous Vehicles to Humanoid Robots
Mobileye was acquired by Intel in 2017 for $15.3 billion, the largest exit in Israeli tech history at the time. In 2025, Intel sold nearly $1 billion worth of its Mobileye shares, reducing its stake to around 80 per cent and signalling a gradual loosening of its grip on the company.
The move into humanoid robotics represents a significant broadening of Mobileye’s focus beyond vehicles into general-purpose robots that can function in homes, factories and warehouses.
Mentee Robotics, founded in 2022, aims to develop humanoid robots that can learn tasks directly from humans rather than being pre-programmed or remotely operated. Its name reflects the concept of a robot being “mentored” by a human user who demonstrates a task, allowing the machine to learn through observation and intent.
The company was founded by Shashua alongside Prof. Lior Wolf, its chief executive and a former director at Facebook AI Research, and Prof. Shai Shalev-Shwartz, a prominent computer scientist and machine-learning researcher. Mentee has raised about $40 million from Ahren Innovation Capital and other investors, according to PitchBook.
A Robot Designed for Homes and Factories
Mentee’s humanoid robot stands about 1.76 metres tall, has human-like dexterity and perception, and is designed to operate in both domestic and industrial environments. The robot can carry up to 25 kilograms, turn in place, balance, squat and manipulate objects with fine motor control.
The company envisions the robot assisting with household chores such as laundry and table setting, as well as performing repetitive or physically demanding tasks in warehouses, fulfilment centres and factories. The robot is designed to learn new tasks through visual imitation of human actions, rather than traditional coding.
“Joining forces with Mobileye gives us access to unparalleled AI infrastructure and commercialization expertise, accelerating our mission to bring scalable, safe, and cost-effective humanoid solutions to market,” said Wolf.
Addressing Labour Shortages and Long-term Demand
Shashua said the first commercial deployments of Mentee’s robots are expected around 2028, initially in industrial and logistics settings such as car manufacturers and automotive suppliers. Home use is projected to follow around 2030.
“I am very optimistic about humanoids and I believe that in 10 years from now there will be millions of robots,” said Shashua. “There is a labor shortage out there in many fulfillment centers — it’s a very boring task and people get injured. There is also a labor shortage in help and home assistance environments such as elderly home care,” said Shashua. “There is lots of potential if you have a useful robot.”
The acquisition positions Mobileye at the centre of one of the most competitive and capital-intensive areas of artificial intelligence development, as global technology companies race to create robots capable of safely and usefully operating in the physical world.
According to industry leaders, the deal is both a diversification strategy and a long-term wager that humanoid robotics will become as transformative as autonomous driving, and potentially an even larger market in the decades ahead.
What This Acquisition Means for the Future of AI
By combining Mobileye’s expertise in autonomous driving with Mentee’s humanoid robotics, the deal highlights the growing importance of AI that interacts directly with human environments, whether in factories, warehouses, or homes. Experts say the expansion marks a strategic pivot for AI companies, where practical deployment and human utility are becoming central to technological value.
The acquisition underscores the increasing convergence of robotics and AI, particularly in areas requiring complex decision-making in unpredictable environments. Autonomous vehicles and humanoid robots share a core challenge: operating safely and effectively in spaces designed for humans.
By leveraging Mobileye’s existing perception and control systems, Mentee’s humanoid robots could accelerate the development of machines capable of performing repetitive, physically demanding, or precise tasks with reliability, a critical step toward wider commercial adoption.
If successfully scaled, it is noted that this could redefine expectations for AI, making machines more flexible, useful, and accessible in everyday life, and laying the groundwork for a future where physical AI is as transformative as its digital counterpart.
Talking Points
It is notable that Mobileye is moving beyond autonomous driving into humanoid robotics, signalling a broader strategic shift towards what it calls “physical AI” — artificial intelligence that operates directly in the real world.
This acquisition positions Mobileye to apply its strengths in perception, decision-making and safety-critical systems to a much wider set of applications beyond vehicles, including logistics, manufacturing and domestic environments.
At Techparley, we see this as an important moment for the AI industry, where the focus is shifting from purely digital intelligence to systems that can interact meaningfully with the physical world.
The idea that robots can be “mentored” by humans, learning tasks through natural demonstration rather than complex programming lowers the barrier to adoption and could make humanoid robots far more practical and accessible.
However, there are still significant hurdles to overcome. Cost, safety, reliability and public trust will determine whether humanoid robots can move from controlled environments into everyday use at scale.
As Mobileye integrates Mentee into its ecosystem, there is an opportunity to set a benchmark for how advanced robotics can be deployed responsibly and usefully. If executed well, this move could help address labour shortages while reshaping how humans and machines work together.
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