Intel invests in Chinese drone maker Yuneec International
27 Aug 2015
Intel has announced an investment of $60 million in Yuneec International, a Chinese aviation company and drone maker, with the companies striking up a relationship for developing new products.
Intel had earlier invested in Airware and PrecisionHawk, but the Yuneec deal comes as its largest investment in a drone company.
The investment underscored Intel's growing interest in drones as potential computing platforms where its processors could find application.
"At Intel we believe in a smart and connected world. And one of the best ways to bring that smart and connected world to everyone and everywhere has been drones," said Intel CEO Brian Krzanich, in a video announcing the deal yesterday.
Other companies like Amazon and Google had been developing drones of their own as they sought new ways of delivering items to consumers.
Yuneec's drones find applications in photography and imaging, and its technology also powered manned electric aircraft.
Venture capitalists and companies had been investing in drone technology on the expectation that unmanned aerial vehicles would prove beneficial for consumers and industrial customers. Yuneec's Chinese rival SZ DJI Technology Co raised $75 million from Accel Partners in May.
''We've got drones on our road map that are going to truly change the world and revolutionise the drone industry,'' Krzanich said.
The Yuneec relationship fitted with Intel strategy to make investments in companies developing products that had the potential to expand the market for semiconductors, as the company looked for new devices for chips. Intel's drone funding was similar to its investments in next-generation data centre software companies such as Mirantis Inc and Cloudera Inc.
Intel has joined hands with OpenStack distribution provider Mirantis to push adoption of the OpenStack cloud computing framework. (See: Intel joins hands with Mirantis to push OpenStack cloud computing framework).