Intel Corp. is in advanced discussions to acquire artificial intelligence chip startup SambaNova Systems Inc. for about $1.6 billion including debt, a move that could significantly strengthen Intel’s position in the fast-growing AI hardware market, according to people familiar with the matter cited by Bloomberg.
Bloomberg reported that a deal for Palo Alto-based SambaNova could be finalised as soon as next month, though the people cautioned that the timing and terms remain subject to change. The sources said it is also possible that SambaNova could pursue an alternative path, as it has signed term sheets with other potential financial investors. Representatives for both Intel and SambaNova declined to comment.
Founded in 2017 by Stanford University professors, including a recipient of a MacArthur “Genius” Award, SambaNova designs custom artificial intelligence chips intended to compete with products from Nvidia. The company has positioned itself as a specialist in high-performance AI systems, an area where Intel has been seeking to regain ground after falling behind rivals.
Intel Chief Executive Officer Lip-Bu Tan serves as chairman of SambaNova, and his venture capital firm Walden International was among the company’s founding investors, leading a $56 million Series A funding round in 2018. Bloomberg noted that this longstanding relationship underscores the strategic logic of the talks, while also highlighting potential governance sensitivities.
At the reported price, an acquisition would give Intel a long-sought AI platform at a fraction of SambaNova’s previous valuation. The startup was valued at $5 billion in 2021 during a $676 million funding round led by SoftBank’s Vision Fund 2, reflecting the sharp reset in technology valuations since the peak of the AI investment boom.
Intel shares have surged in recent months after the U.S. government said in August it would take a 10% stake in the chipmaker, part of a broader effort to shore up domestic semiconductor manufacturing. The stock has gained about 60% since before that announcement, though it fell 4.3% on Friday to $37.81 in New York trading, giving Intel a market value of about $180 billion, Bloomberg reported.
