Intel Corp. invested $60 million in a drone company based in China as the chipmaker continues to bet that such devices will have commercial applications to offset the decline of the PC market.
Forbes reported that Intel bought through its venture capital unit a stake in Shanghai-based Yuneec International, which makes drone and electric airplanes. The report noted that the Intel has also invested in drone makers Airware and PrecisionHawk.
The Wall Street Journal said in another report that Intel and Yuneec will collaborate on the products, with Intel's chips to be used in the former's drones. It noted that Intel chief executive Brian Krzanich has been pushing for the company to explore other opportunities and that he has used various gadgets during high-profile speeches including an Intel event last week.
Both reports did not say how the funds will be used by Yuneec, which Krzanich said posses the capability to be a game-changer in the industry.
Forbes noted in its report that a number of drone companies in China had attracted investors including Ehang and DJI, which raised $42 million and $75 million respectively earlier this year.
The Wall Street Journal said Krzanich has said that drones have many possible applications such as package delivery and disaster inspection and may revolutionize the industry. The report added that Intel is trying to develop special cameras that will allow drones to avoid objects without human direction. It said current drones may now be programmed to perform simple tasks without human control such as hovering or flying home.
The paper said Yuneec was founded in 1999 and first offered piloted airplanes but offered drones in 2014. The report said one model sells for $1,299 and has an ultrahigh definition camera for smooth flying and video capture. The company's products are also ready to fly out of the box and no longer have to be assembled.
