Under the deal, Intel will supply its EyeQ5 chip designed for self-driving vehicles beginning in 2021.
The financial terms of the deal were not disclosed. Automakers alone have generally lagged behind developing these new technologies. Erez Dagan, senior vice president for advanced development and strategy at Mobileye, has stated that EyeQ4 will be launching within the next several weeks.
As manufacturers continue to implement semi-autonomous features into their vehicles such as advanced collision avoidance, automatic braking, and radar-based cruise control, the movement towards full self-driving capabilities is pushing ahead.
Intel and Mobileye are competing with a number of other chip producers and machine vision systems, including Nvidia, to provide the brains and eyes of standalone cars.
The new system will be made available for a variety of the automaker's auto models that will have only partial automation - where the vehicle is self-driving, but needs the vigilance of a driver - as well as models integrating a more advanced system of conditional automation, the Reuters report said.
Mobileye has claimed there are now about 27 million cars worldwide using some form of driver-assistance technology, and that it has a 70 percent share of the self-driving vehicle technology market.
In Level 3, the vehicle is self-driving but the driver has about 10 seconds to take over if the system is unable to continue. It's now working with a number of automakers - General Motors, Nissan, Audi, BMW, Honda and Fiat Chrysler among them - on next-gen Level 3 driverless vehicle tech, to debut next year.
Mobileye told "Reuters that it is also testing a more advanced Level 4 technology in Ford Fusion hybrids with 12 small cameras installed and four of the soon-to-be-released EyeQ4 chips in the trunk".
Mobileye says that while its Level 4 systems will start production in 2021, many of its technologies are relevant to creating systems that may soon be purchased by consumers.
This development in the Mobileye technology will usher in a new type of transport called 'robo-taxis, ' self-driving cabs, Shashua told Reuters. Alphabet's self-driving arm Waymo plans to begin a commercial self-driving ride-hailing service later this year in Arizona. The cars drive completely autonomously and are driving every day, he said.