Intel is set to buy Movidius Technology, a firm that makes image sensing chips for the Internet of Things (IoT), to increase its efforts in augmented and virtual reality, as well as drones and robotics.

Intel explained that as devices become smarter, System on a Chip (SoC) attributes will be essential to giving “human-like sight” to the 50 billion connected devices that are projected by 2020.

With Movidius, Intel said it gains low-power, high-performance SoC platforms for accelerating computer vision applications.

“Additionally, this acquisition brings algorithms tuned for deep learning, depth processing, navigation and mapping, and natural interactions, as well as broad expertise in embedded computer vision and machine intelligence,” said Josh Walden, senior vice president and general manager of Intel’s New Technology Group.

Movidius CEO Remi El-Ouazzane explained that his firm’s vision processing unit platform for “on-device vision processing” combined with Intel’s depth sensing solution (RealSense Technology) is a “winning combination for autonomous machines that can see in 3D, understand their surroundings and navigate accordingly.” He added that “we’re on the cusp of big breakthroughs in artificial intelligence”.

Movidius’ latest chip, the Myriad 2, is tiny and can make sense of multiple video streams at once.

The firm has worked with companies such as Google and Lenovo and is currently working on AI by  combining advanced algorithms with dedicated low-power hardware.

“At Intel, we’ll be part of a team that is attacking this challenge from the cloud, through the network and on the device,” said El-Ouazzane, adding that now Movidius will have “the technology and resources to innovate faster and execute at scale”.

Last month, Intel bought machine learning startup Nervana Systems for $400 million.

The transaction is subject to satisfaction of certain customary closing conditions. The terms of the deal were not disclosed.