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Intel agrees to sell its NAND business to SK Hynix for $9 billion

SK Hynix, one of the world’s largest chip makers, announced today it will pay $9 billion for Intel’s flash memory business. Intel said it will use proceeds from the deal to focus on artificial intelligence, 5G and edge computing.

“For Intel, this transaction will allow us to to further prioritize our investments in differentiated technology where we can play a bigger role in the success of our customers and deliver attractive returns to our stockholders,” said Intel chief executive officer Bob Swan in the announcement.

The Wall Street Journal first reported earlier this week that the two companies were nearing an agreement, which will turn SK Hynix into one of the world’s largest NAND memory makers, second only to Samsung Electronics.

The deal with SK Hynix is the latest one Intel has made so it can double down on developing technology for 5G network infrastructure. Last year, Intel sold the majority of its modem business to Apple for about $1 billion, with Swan saying that the time that the deal would allow Intel to “[put] our full effort into 5G where it most closely aligns with the needs of our global customer base.”

Once the deal is approved and closes, Seoul-based SK Hynix will take over Intel’s NAND SSD and NAND component and wafer businesses, and its NAND foundry in Dalian, China. Intel will hold onto its Optane business, which makes SSD memory modules. The companies said regulatory approval is expected by late 2021, and a final closing of all assets, including Intel’s NAND-related intellectual property, will take place in March 2025.

Until the final closing takes places, Intel will continue to manufacture NAND wafers at the Dalian foundry and retain all IP related to the manufacturing and design of its NAND flash wafers.

As the Wall Street Journal noted, the Dalian facility is Intel’s only major foundry in China, which means selling it to SK Hynix will dramatically reduce its presence there as the United States government puts trade restrictions on Chinese technology.

In the announcement, Intel said it plans to use proceeds from the sale to “advance its long-term growth priorities, including artificial intelligence, 5G networking and the intelligent, autonomous edge.”

During the six-month period ending on June 27, 2020, NAND business represented about $2.8 billion of revenue for its Non-volatile Memory Solutions Group (NSG), and contributed about $600 million to the division’s operating income. According to the Wall Street Journal, this made up the majority of Intel’s total memory sales during that period, which was about $3 billion.

SK Hynix CEO Seok-Hee Lee said the deal will allow the South Korean company to “optimize our business structure, expanding our innovative portfolio in the NAND flash market segment, which will be comparable with what we achieved in DRAM.”

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Arm CEO Simon Segars discusses AI, data centers, getting acquired by Nvidia and more

Nvidia is in the process of acquiring chip designer Arm for $40 billion. Coincidentally, both companies are also holding their respective developer conferences this week. After he finished his keynote at the Arm DevSummit, I sat down with Arm CEO Simon Segars to talk about the acquisition and what it means for the company.

Segars noted that the two companies started talking in earnest around May 2020, though at first, only a small group of executives was involved. Nvidia, he said, was really the first suitor to make a real play for the company — with the exception of SoftBank, of course, which took Arm private back in 2016 — and combining the two companies, he believes, simply makes a lot of sense at this point in time.

“They’ve had a meteoric rise. They’ve been building up to that,” Segars said. “So it just made a lot of sense with where they are at, where we are at and thinking about the future of AI and how it’s going to go everywhere and how that necessitates much more sophisticated hardware — and a much more sophisticated software environment on which developers can build products. The combination of the two makes a lot of sense in this moment.”

The data center market, where Nvidia, too, is already a major player, is also an area where Arm has heavily focused in recent years. And while it goes up against the likes of Intel, Segars is optimistic. “We’re not in it to be a bit player,” he said. “Our goal is to get a material market share and I think the proof to the pudding is there.”

He also expects that in a few years, we’ll see Arm-powered servers available on all of the major clouds. Right now, AWS is ahead in this game with its custom-built Gravitron processors. Microsoft and Google do not currently offer Arm-based servers.

“With each passing day, more and more of the software infrastructure that’s required for the cloud is getting ported over and optimized for Arm. So it becomes a more and more compelling proposition for sure,” he said, and cited both performance and energy efficiency as reasons for cloud providers to use Arm chips.

Another interesting aspect of the deal is that we may just see Arm sell some of Nvidia’s IP as well. That would be a big change — and a first — for Nvidia, but Segars believes it makes a lot of sense to do so.

“It may be that there is something in the portfolio of Nvidia that they currently sell as a chip that we may look at and go, ‘you know, what if we package that up as an IP product, without modifying it? There’s a market for that.’ Or it may be that there’s a thing in here where if we take that and combine it with something else that we were doing, we can make a better product or expand the market for the technology. I think it’s going to be more of the latter than it is the former because we design all our products to be delivered as IP.”

And while he acknowledged that Nvidia and Arm still face some regulatory hurdles, he believes the deal will be pro-competitive in the end — and that the regulators will see it the same way.

He does not believe, by the way, that the company will face any issues with Chinese companies not being able to license Arm’s designs because of export restrictions, something a lot of people were worried about when the deal was first announced.

“Export control of a product is all about where was it designed and who designed it,” he said. “And of course, just because your parent company changes, doesn’t change those fundamental properties of the underlying product. So we analyze all our products and look at how much U.S. content is in there, to what extent are our products subject to U.S. export control, U.K. export control, other export control regimes? It’s a full-time piece of work to make sure we stay on top of that.”

Here are some excerpts from our 30-minute conversation:

TechCrunch: Walk me through how that deal came about? What was the timeline for you?

Simon Segars: I think probably around May, June time was when it really kicked off. We started having some early discussions. And then, as these things progress, you suddenly kind of hit the ‘Okay, now let’s go.’ We signed a sort of first agreement to actually go into due diligence and then it really took off. It went from a few meetings, a bit of negotiation, to suddenly heads down and a broader set of people — but still a relatively small number of people involved, answering questions. We started doing due diligence documents, just the mountain of stuff that you go through and you end up with a document. [Segars shows a print-out of the contract, which is about the size of two phone books.]

You must have had suitors before this. What made you decide to go ahead with this deal this time around?

Well, to be honest, in Arm’s history, there’s been a lot of rumors about people wanting to acquire Arm, but really until SoftBank in 2016, nobody ever got serious. I can’t think of a case where somebody actually said, ‘come on, we want to try and negotiate a deal here.’ And so it’s been four years under SoftBank’s ownership and that’s been really good because we’ve been able to do what we said we were going to do around investing much more aggressively in the technology. We’ve had a relationship with Nvidia for a long time. [Rene Haas, Arm’s president of its Intellectual Property Group, who previously worked at Nvidia] has had a relationship with [Nvidia CEO Jensen Huang] for a long time. They’ve had a meteoric rise. They’ve been building up to that. So it just made a lot of sense with where they are at, where we are at and thinking about the future of AI and how it’s going to go everywhere and how that necessitates much more sophisticated hardware — and a much more sophisticated software environment on which developers can build products. The combination of the two makes a lot of sense in this moment.

How does it change the trajectory you were on before for Arm?

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Mobileye signs driver-assistance deal with Geely, one of China’s largest privately-held auto makers

Mobileye’s computer vision technology will be used in a new premium electric vehicle called Zero Concept from Geely Auto Group, one of China’s largest privately-held automobile manufacturers. Mobileye’s owner Intel made the announcement today at the Beijing Auto Show. Zero Concept is produced by Lynk & Co., the brand formed as a joint venture between Geely Auto and Volvo Car Group, and uses Mobileye’s SuperVision driving-assistance system.

Intel also announced that Mobileye and Geely Auto have signed a long-term, high-volume agreement for advanced driver-assistance systems that means more Geely Auto vehicles will be equipped with Mobileye’s computer vision technology.

In a post, Mobileye chief executive officer and Intel senior vice president Amnon Shashua wrote that the deal is the first time “Mobileye will be responsible for the full solution stack, including hardware and software, driving policy and control.”

He added “it also marks the first time that an OEM has publicly noted Mobileye’s plan to provide over-the-air updates to the system after deployment. While this capacity has always been in our repertoire, Geey and Mobileye want to assure customers that we can easily scale their driving-assistance features and keep everything up to date across the car’s lifetime.”

Based in Israel, Mobileye was acquired by Intel in 2017 for $15.3 billion. Its technology and services are used in vehicles from automakers including BMW, Audi, Volkswagen, Nissan, Honda and General Motors, and includes features that warn drivers about issues like blind spots, potential lane departures, collision risks and speed limits.

Geely Auto’s parent company is Zhejiang Geely Holding Group, also the parent company of Volvo Car Group. In 2019, Geely Auto Group says its brands sold a total of more than 1.46 million units. China is one of the fastest-growing electric vehicle markets in the world, and even though sales were hurt by the COVID-19 pandemic, government policies, including consumer subsidies and investment in charging infrastructure, are expected to help its EV market recover.

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SoftBank could make, gasp, a profit on its expected sale of Arm for $40B

While the big deal we have been tracking the past few weeks has been TikTok, there was another massive deal under negotiation that mirrors some of the international tech dynamics that have plagued the consumer social app’s sale.

Arm Holdings, which is the most important designer of processor chips in smartphones and increasingly other areas, has been quietly shopped around as SoftBank works to shed its investments and raise additional capital to placate activist investors like Elliott Management. The Japanese telco conglomerate bought Arm outright back in 2016 for $32 billion.

Now, those talks look like they are coming toward a conclusion. The Wall Street Journal first reported that SoftBank is close to locking in a sale to Nvidia for cash and stock that would value Arm at $40 billion. The Financial Times this afternoon further confirmed the outlines of the deal, which could be announced as early as Monday.

A couple of thoughts while we wait for official confirmation from Nvidia, Arm, and SoftBank.

First, Arm has struggled to turn its wildly successful chip designs — which today power billions of new chips a year — into a fast-growth company. As we discussed back in May, the company has ploddingly entered new growth markets, and while it has had some notable brand successes including Apple announcing that Arm-powered processor designs would be coming to the company’s iconic Macintosh lineup, those wins haven’t translated into significant profits.

SoftBank took a wild swing back in 2016 buying the company. If $40 billion is indeed the price, it’s a 25% gain in roughly four years. Given SoftBank’s recent notorious investing track record, that actually looks stellar, but of course, there was a huge opportunity cost for the company to buy such a pricy asset. Nvidia, which SoftBank’s Vision Fund bought a public stake in, has seen its stock price zoom more than 16x in that time frame, driven by AI and blockchain applications.

Second, assuming a deal is consummated, it’s a somewhat quiet denouement for one of the truly category-defining companies that has emanated out of the United Kingdom. The chip designer, which is based in Cambridge and has deep ties to the leading British university, has been seen as a symbol of Britain’s long legacy at the frontiers of computer science, in which Alan Turing played a key role in the development of computability.

Arm’s sale comes just as the UK government gears up for a fight with the European Union over its industrial policy, and specifically deeper funding for precisely the kinds of technologies that Arm was developing. Arm of course isn’t likely to migrate its workforce, but its ownership by an American semiconductor giant versus a Japanese holding company will likely end its relatively independent operations.

Third and finally, the deal would give Nvidia a dominant position in the semiconductor market, bringing together the company’s strength in graphics and AI processing workflows along with Arm’s underlying chip designs. While the company would not be fully vertically integrated, the combination would intensify Nvidia’s place as one of the major centers of gravity in chips.

It’s also a symbol of how far Intel has fallen behind its once diminutive peer. Intel’s market cap is about $210 billion, compared to Nvidia’s $300 billion. Intel’s stock is practically a straight line compared to Nvidia’s rapid growth the past few years, and this news isn’t likely to be well-received in Intel HQ.

Given the international politics involved and the sensitivity about the company, any deal would have to go through customary antitrust reviews in multiple countries, as well as potential national security reviews in the UK.

For SoftBank, it’s another sign of the company’s retrenchment in the face of extreme losses. But at least for now, it has a likely win on its hands.

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Kneron launches its new AI chip to challenge Google and others

Fresh off a $40 million Series A round, edge AI specialist Kneron today announced the launch of its newest custom chip, the Kneron KL 720 SoC.

With funding from the likes of Alibaba, Sequoia, Horizons Ventures, Qualcomm and SparkLabs Taipei (as well as a few undisclosed backers), it’s worth taking the company’s efforts seriously, and Kneron has no qualms about comparing its chips to those of Intel and Google, for example. It argues that its KL 720 is twice as energy efficient as Intel’s latest Movidius chips and four times more efficient than Google’s Coral Edge TPU at running the MobileNetV2 image recognition benchmark.

Compared to its previous generation of chips, this updated version can process 4K still images and videos at a 1080P resolution. It also features a number of new audio recognition breakthroughs for the company, which Kneron says will allow devices that use its chips to bypass the standard wake words on other chips and have immediate conversations with the device.

Image Credits: Kneron

Overall, Kneron promises 1.5 TOPS in performance from its SoC, which uses an Arm Cortex M4 as its main control unit. The average power consumption for the full package is around 1.2W.

“KL720 combines power with unmatched energy-efficiency and Kneron’s industry-leading AI algorithms to enable a new era for smart devices,” said Kneron founder and CEO Albert Liu. “Its low cost enables even more devices to take advantage of the benefits of edge AI, protecting user privacy, to an extent competitors can’t match. Combined with our existing KL520, we are proud to offer the most comprehensive suite of AI chips and software for devices on the market.”

With KNEO, the company also offers an interesting networking solution for devices that are powered by its chips. With this, developers can create their own private networks and connect multiple sensors without having to route data to the cloud. That network uses blockchain technology to secure the data and in a bit of a twist, Kneron hopes to create a marketplace that will allow consumers to exchange or sell their data to buyers.

For now, though, the company seems to be more focused on the core hardware. That’s also an area where we’ve seen the competition heat up, with other well-funded startups like Hailo also recently launching their latest chips.

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Microsoft, Amazon back a SoCal company making microchips specifically for voice-based apps

Microsoft’s venture capital fund, M12 Ventures has led a slew of strategic corporate investors backing a new chip developer out of Southern California called Syntiant, which makes semiconductors for voice recognition and speech-based applications.

“We started out to build a new type of processor for machine learning, and voice is our first application,” says Syntiant chief executive Kurt Busch. “We decided to build a chip for alwyas-on battery powered devices.”

Those chips need a different kind of processor than traditional chipsets, says Busch. Traditional compute is about logic, and deep learning is about memory access, traditional microchip designs also don’t perform as well when it comes to parallel processing of information.

Syntiant claims that its chips are two orders of magnitude more efficient, thanks to its data flow architecture that was built for deep learning, according to Busch.

It’s that efficiency that attracted investors including M12, Microsoft Corp.’s venture fund; the Amazon Alexa Fund; Applied Ventures, the investment arm of Applied Materials; Intel Capital, Motorola Solutions Venture Capital and Robert Bosch Venture Capital.

These investment firms represent some of the technology industry’s top chip makers and software developers, and they’re pooling their resources to support Syntiant’s Irvine, Calif.-based operations.

Image Credits: Bryce Durbin / TechCrunch

“Syntiant aligns perfectly with our mission to support companies that fuel voice technology innovation,” said Paul Bernard, director of the Alexa Fund at Amazon. “Its technology has enormous potential to drive continued adoption of voice services like Alexa, especially in mobile scenarios that require devices to balance low power with continuous, high-accuracy voice recognition. We look forward to working with Syntiant to extend its speech technology to new devices and environments.” 

Syntiant’s first device measures 1.4 by 1.8 millimeters and draws 140 microwatts of power. In some applications, Syntiant’s chips can run for a year on a single coin cell.

“Syntiant’s neural network technology and its memory-centric architecture fits well with Applied Materials’ core expertise in materials engineering as we enable radical leaps in device performance and novel materials-enabled memory technologies,” said Michael Stewart, principal at Applied Ventures, the venture capital arm of Applied Materials, Inc. “Syntiant’s ultra-low-power neural decision processors have the potential to create growth in the chip marketplace and provide an effective solution for today’s demanding voice and video applications.” 

So far, 80 customers are working with Syntiant to integrate the company’s chips into their products. There are a few dozen companies in the design stage and the company has already notched design wins for products ranging from cell phones and smart speakers to remote controls, hearing aids, laptops and monitors. Already the company has shipped its first million units.  

“We expect to scale that by 10 x by the end of this year,” says Busch. 

Syntiant’s chipsets are designed specifically to handle wakes and commands, which means that users can add voice recognition features and commands unique to their particular voice, Busch says.

Initially backed by venture firms including Atlantic Bridge, Miramar and Alpha Edison, Syntiant raised its first round of funding in October 2017. The company has raised a total of $65 million to date, according to Busch.

“Syntiant’s architecture is well suited for the computational patterns and inherent parallelism of deep neural networks,” said Samir Kumar, an investor with M12 and new director on the Syntiant board. “We see great potential in its ability to enable breakthroughs in power performance for AI processing in IoT [Internet of things].” 

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“Made in America” is on (government) life support, and the prognosis isn’t good

Intel and Boeing, two of the pillars of American industry.

Intel makes some of the most impressive chips in the world and has for decades, driving high-performance computing to its limits while supporting a company with a market cap today of $200 billion and supporting more than 110,000 employees. Meanwhile, Boeing remains a global leader in aviation despite retiring the 747, with $66 billion in revenue backing a market cap of $90 billion and hosting more than 153,000 workers.

Like pillars of classic Rome though, they exist merely as a shell of their former function. They are weathered, tired, and crumbling, and it doesn’t seem likely that they can hold up the American economy the way they have over the past generation, nor keep the country on the frontier of innovation any longer in their critical industries.

Deindustrialization has swept through the United States for decades of course. It started with the easy stuff — textiles, consumer widgets, appliances — but the sophistication of export-driven economies like Korea, Germany, Taiwan, China, Thailand, Turkey and others has pushed more and more of the manufacturing stack overseas.

Now, even the absolute finest pillars of American exceptionalism in industry are under deep threat. Intel is in the worst position between the two. The company’s bombshell announcement that it is delaying its next-generation 7nm node and would also begin outsourcing some of its manufacturing caused waves on Wall Street, with the stock down nearly 20% in just two weeks. Analysts increasingly believe that Taiwan contract fab TSMC is taking a multi-year lead over Intel’s technology.

Meanwhile, Boeing had and continues to have that whole 737 MAX debacle since the plane model’s first crash in October 2018. That was debilitating enough, but then you add coronavirus and the global collapse of travel on top of it, and the company’s very prospects are looking quite a bit more endangered than anyone could have anticipated two years ago.

For the United States, the first step in ameliorating these slow-motion train wrecks has been the classic policy crisis tool of the bailout. Intel is maybe the most prominent example of America’s death in semiconductors, but it is hardly alone. So Congress is targeting the industry for heavy incentives to try to bridge the gap. Two weeks ago, Senator John Cornyn (R-TX) got widespread bipartisan support for his amendment to this year’s defense budget bill that would appropriate billions of dollars of funding and incentives to propel American chipmaking.

Meanwhile, Boeing sought a $60 billion government bailout, before finding a debt consortium of private investors to fund operations. Yet, Boeing gets a different kind of support from the U.S. government, given that a third of its revenues from defense sales, which is obviously heavily driven by the Pentagon. A government bailout for the manufacturer this year is still not out of the question.

Smothering dollars on these companies isn’t going to change the rot that is spreading within. Both companies have transformed engineering-focused cultures to profit-driven maximization, while facing keen global competition that has chipped away at their advantages. Boeing is again safer than Intel — Airbus hasn’t been much better when it comes to innovation and bad strategic decisions like the A380, and China’s airframe manufacturer Commercial Aircraft Corporation of China isn’t really ready for primetime although it is certainly progressing.

It’s not that industrial policy fails, it’s that American industrial policy seems flagrantly incompetent.

Taiwan has made semiconductor excellence a critical aspect of its national economy. Korea has made cultural productions like K-pop and K-drama a top government priority, now a massive growing global industry. China has perhaps most notoriously made supporting flagship industries a key bedrock of its economic development, to much success over the past three decades. And the list continues.

What’s the difference? In one word: strategy. In each of these successful cases, governments spurred the creation of new industries through incentives and policy changes, while ensuring that these industries built up differentiated intellectual property that would pay back those incentives in spades.

The United States on the other hand always jumps in with the handouts at precisely the wrong time. Rather than incentivizing the creation of new industries, it runs to the industries in decline and sprays that cash fertilizer across the weeds and deadwood.

While Congress spends billions to try to salvage the chip industry, the Trump Administration announced a $75 million quantum computing initiative aimed at spurring America to the frontiers of advanced computing. While China is investing billions in 5G wireless technologies, America is offering hundreds of thousands of dollars to start rural testbeds.

As an economic superpower, the United States has lived in a world where it was simply, by default, the best at whatever it and its citizens wanted to be. Industries could be fragmented, government policy could be out-of-whack, schools and universities could be horrifically inefficient in training, but none of that mattered since few other countries could compete across such a breadth of industry.

Today, plenty of countries can compete in manufacturing and cultural production. And not only can they compete, but they are willing to go all-in to ensure that they succeed in these endeavors. Taiwan is not great at semiconductors because of a random constellation of factors, it’s great because it pushed its entire economy, education system, and government to prioritize its excellence on top of changes like the opening of the global economy and the rise of China.

Intel and Boeing still have a chance of course, they are still massive companies with cash and talent. Yet, one can’t help look at the history of every other collapsed manufacturing company in the U.S. and not feel a startling sense of déjà vu. We didn’t get it right those times — do we have it in us to do it right this time?

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Apple says it’s ‘committed’ to supporting Thunderbolt on new Macs after Intel details latest version

Earlier today, Intel offered some key insight into Thunderbolt 4, following an initial unveiling at CES back in January. The latest version of the connection standard isn’t actually faster than its predecessor (still offering up the same 40 gbps as its predecessor), but there are some key improvements on-board, including some updated system requirements. Here’s the rundown, per Intel:

    • Double the minimum video and data requirements of Thunderbolt 3.

      • Video: Support for two 4K displays or one 8K display.
      • Data: PCIe at 32 Gbps for storage speeds up to 3,000 MBps.
    • Support for docks with up to four Thunderbolt 4 ports.
    • PC charging on at least one computer port.
    • Wake your computer from sleep by touching the keyboard or mouse when connected to a Thunderbolt dock. Required Intel VT-d-based direct memory access (DMA) protection that helps prevent physical DMA attacks.

The new version will be compatible with both Thunderbolt 3 and old USB connections, and it’s set to arrive at some point later in 2020 on laptops sporting Tiger Lake CPUs. One big question mark in all of this, however, is whether Apple will continue to support this latest connection on its upcoming line of ARM-based Macs. After all, the move marks a key rift in the longstanding relationship between Apple and Intel. 

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In a statement offered to TechCrunch, the company restated its commitment to connection it’s been so invested in over the past several years, noting, “Over a decade ago, Apple partnered with Intel to design and develop Thunderbolt, and today our customers enjoy the speed and flexibility it brings to every Mac. We remain committed to the future of Thunderbolt and will support it in Macs with Apple silicon.”

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Intel to invest $253.5 million in India’s Reliance Jio Platforms

Intel said on Friday it will invest $253.5 million in Jio Platforms, joining a roster of high-profile investors including Facebook, General Atlantic, and Silver Lake that have backed India’s top telecom operator in recent months.

The American chipmaker’s investment arm said it is acquiring a 0.39% stake in Jio Platforms, giving the Indian firm a valuation of $65 billion. Intel Capital is the 12th investor to buy a stake in Jio Platforms, which has raised more than $15.5 billion by selling a 25% stake since April this year.

“Jio Platforms’ focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel’s purpose of delivering breakthrough technology that enriches lives. We believe digital access and data can transform business and society for the better,” said Wendell Brooks, Intel Capital President, in a statement.

The announcement today comes weeks after Mukesh Ambani, who controls Reliance Industries — the parent firm of Jio Platforms — suggested that Saudi Arabia’s PIF $1.5 billion investment on June 18 in his digital unit had marked the “end of Jio Platforms’ current phase of induction of financial partners.”

Ambani, who is India’s richest man, said on Friday that he was excited to “work together with Intel to advance India’s capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians.”

The new deal further illustrates the opportunities foreign investors see in Jio, a four-year-old subsidiary of Reliance Industries (India’s most valuable firm) that has upended the telecommunications market in India with cut-rate voice calls and mobile data tariffs. Jio has about 400 million subscribers.

Analysts at Bernstein said last month that they expect Jio Platforms to reach 500 million customers by 2023, and control half of the market by 2025. Jio Platforms competes with Bharti Airtel and Vodafone Idea, a joint venture between British giant Vodafone and Indian tycoon Kumar Mangalam Birla’s Aditya Birla Group.

Jio Platforms also operates a bevy of digital apps and services, including music streaming service JioSaavn (which it says it will take public), on-demand live television service JioTV and payments app JioMoney, as well as smartphones and broadband business. These services are available to Jio subscribers at no additional charge.

On Thursday evening, Jio Platforms launched JioMeet, a video-conferencing service that offers unlimited calls with “up to 24 hours” time limit on each session. The service, which currently has no paid plans, looks uncannily like Zoom.

Last month, Ambani said the funds in Jio Platforms had helped him clear oil-to-retail giant Reliance Industries’ net debt of about $21 billion. Ambani had originally pledged to clear Reliance’s debt due by early 2021.

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BMW, Mercedes Benz end ‘long term’ automated driving alliance, for now

BMW Group and Mercedes-Benz AG have punted on what was meant to be a long term collaboration to develop next-generation automated driving technology together, less than a year after announcing the agreement.

The German automakers called the break up “mutual and amicable” and have each agreed to concentrate on their existing development paths. Those new paths may include working with new or current partners. The two companies also emphasized that cooperation may be resumed at a later date.

The partnership, which was announced in July 2019, was never meant to be exclusive.  Instead, it reflected the increasingly common approach among legacy manufacturers to form loose development agreements in an aim to share the capitally intensive work of developing, testing and validating automated driving technology.

The two companies did have some lofty goals. The partnership aimed to develop  driver assistance systems, highly automated driving on highways, and automated parking and launch those technology in series vehicles scheduled for 2024.

It seems that the perceived benefits of working together were overshadowed by reality: creating a shared technology platform was a more complex and expensive task than expected, according to comments from the companies. BMW and Mercedes-Benz AG said they were unable to hold detailed expert discussions and talk to suppliers about technology roadmaps until the contract was signed last year.

“In these talks — and after extensive review — both sides concluded that, in view of the expense involved in creating a shared technology platform, as well as current business and economic conditions, the timing is not right for successful implementation of the cooperation,” the companies said.

BMW and Mercedes have other projects and partners. BMW, for instance, is part of a collaboration with Intel, Mobileye, Fiat Chrysler Automobiles and Ansys. Daimler and Bosch launched a robotaxi pilot project in San Jose last year.

Meanwhile, both companies are still working together in other areas. Five years, BMW and Daimler, the parent company of Mercedes-Benz, joined Audi AG to acquire location and technology platform HERE. That ownership consortium has since grown to include more companies.

And last year, BMW Group and Daimler AG also pooled their mobility services in a joint venture under the umbrella of the NOW family.

Separately, BMW said Friday it will cut 6,000 jobs in an agreement reached with the German Works Council. The cuts, prompted by sluggish sales caused by the COVID-19 pandemic, will be reportedly accomplished through early retirement, non-renewal of temporary contracts, ending redundant positions and not filling vacant positions, Marketwatch reported.

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