Mobileye’s Clever Contraption & The Robotaxi Riddle

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Now, robotaxis. A curious notion, aren’t they? The future of getting about, they say. But there’s a rather sticky problem, a bit like trying to herd particularly stubborn snails. You see, these automated chariots, despite all the whizz-bang technology, are frightfully dim in certain situations. Goldman Sachs, a bunch of fellows who count beans for a living, reckon each robotaxi currently needs a human babysitter – a remote operator – for every three vehicles. Three! It’s utterly preposterous. These operators are there to rescue the metal boxes when the onboard brains have a bit of a wobble. Just recently, in San Francisco, a fleet of Waymo taxis had a collective brain-freeze during a power cut, causing a right old traffic jam. A proper mess, it was.

Goldman Sachs, naturally, aren’t thrilled. They want fewer human hands involved, because humans cost money, you see. They’re predicting that by 2030, one operator should be able to manage ten robotaxis, and by 2040, a whopping thirty-five! That’s a lot of metal to control. It’ll require a bit of ingenuity, a dash of magic, and a whole heap of technological tinkering.

And that’s where Mobileye (MBLY +3.67%) comes in. A clever bunch, they are, with a rather peculiar idea. They think they’ve found a way to make these remote operators largely unnecessary. A bit like inventing a self-stirring teacup, really.

Pairing the Speedy Thinker with the Slowcoach

Mobileye’s CEO, a fellow named Amnon Shashua, has concocted what he calls a “fast-think, slow-think” architecture. It’s a bit like having a racing hare paired with a particularly sluggish tortoise. The idea is to split the workload. For urgent matters – a pedestrian stepping into the road, for example – the robotaxi needs to react instantly. So, all the quick calculations are done onboard, using the car’s own brains. Ten times a second, they’re scanning the surroundings. Blink and you’ll miss it!

But for less urgent decisions – should the taxi wait for a slow-moving dustbin lorry to amble past, or should it take a detour? – there’s no need to rush. These decisions can be farmed out to the cloud, to much more powerful brains that aren’t crammed into the car’s engine. It’s like sending a tricky crossword puzzle to a team of experts, rather than expecting the driver to solve it himself.

Mobileye’s system can tap into these cloud-based brains at a leisurely pace, making the difficult decisions. Shashua believes this will dramatically reduce the need for human intervention, and possibly replace those remote operators altogether. If it works, and that’s a rather large ‘if’, it could make robotaxis a whole lot more profitable. A rather pleasing thought for investors, wouldn’t you agree?

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Gearing Up for a Fleet of 100,000

This fast-slow architecture is crucial to Mobileye’s deal with Volkswagen, a rather large German car company. They plan to put 100,000 robotaxis on the road by 2033. A truly ambitious undertaking! They’re starting this year, removing the safety drivers as a first step. A bit like letting a toddler fly a kite, really. Risky, but potentially rewarding.

Mobileye’s future revenue pipeline, stretching out for eight years, now stands at a hefty $24.5 billion – a 42% increase over the past three years. It will take time for the robotaxi industry to truly take off, but Mobileye’s clever contraption represents a significant step towards making it economically viable. And that, my friends, is something to keep a very close eye on. A truly exciting prospect for those of us who enjoy a good stock tip.

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2026-01-26 18:22