Intel Corp. is in late-stage negotiations to acquire artificial intelligence chip startup SambaNova Systems Inc. for roughly 1.6 billion, including debt, according to people familiar with the discussions. The Palo Alto, California-based company could see a transaction finalized as early as next month, although the sources cautioned there is no certainty a deal will be completed and noted that pricing, structure, and timing remain subject to change. They also said SambaNova has signed term sheets with other potential financial backers, meaning the startup could still opt for alternative funding or strategic options.
Both Intel and SambaNova declined to comment on the reported talks. Founded in 2017 by Stanford University professors, including a MacArthur “Genius” grant recipient, SambaNova designs custom artificial intelligence processors and systems positioned as challengers to Nvidia’s dominant artificial intelligence chip lineup. The prospective deal is shaped by close existing ties: Intel Chief Executive Officer Lip-Bu Tan currently serves as chairman of SambaNova, and his venture capital firm Walden International was an early backer that led the startup’s 56 million Series A funding round in 2018.
At an estimated price of 1.6 billion, acquiring SambaNova would give Intel a ready-made artificial intelligence hardware platform at what is described as a steep discount to the startup’s prior valuation. In 2021, SambaNova was valued at 5 billion during a 676 million fundraising round led by SoftBank Group’s Vision Fund 2, reflecting the peak of investor enthusiasm for artificial intelligence-focused semiconductor companies. For Intel, the potential acquisition would mark a significant step in strengthening its artificial intelligence portfolio as competition intensifies and rivals such as Nvidia pull ahead on the back of surging data center and enterprise demand.
The talks are unfolding against a backdrop of a strong rally in Intel’s stock. The shares have climbed roughly 60% since before August, when the US government announced it would acquire a 10% stake in the company as part of efforts to bolster domestic semiconductor production, a move that helped restore investor confidence after years of challenges. Despite this broader uptrend, Intel shares fell on Friday, sliding 4.3% to close at 37.81 in New York trading, leaving the company with a market capitalization of approximately 180 billion. If completed, the SambaNova acquisition would highlight Intel’s renewed effort to regain relevance in the fast-moving artificial intelligence chip market and underscore how sector valuations have reset since 2021, creating openings for well-capitalized buyers to secure advanced technology platforms at more attractive prices.
