Intel Progresses Toward Acquiring SambaNova AI Chip Firm

Intel has initiated steps to potentially acquire SambaNova Systems, an emerging player in the AI chip industry, according to individuals familiar with the situation who shared details with WIRED.

While the specifics of the preliminary agreement remain undisclosed, the term sheet is not legally binding. This indicates that the acquisition is still pending, subject to regulatory approvals and financial assessments, which may span several weeks or months.

Intel’s interest in purchasing the startup was initially hinted at in late October. Back then, negotiations were still in preliminary phases, with discussions about SambaNova potentially being acquired for less than its previous valuation of $5 billion in April 2021.

Connections and Investments

Interestingly, current Intel CEO Lip-Bu Tan holds the position of chairman at SambaNova Systems. Intel Capital, which is poised to become an independent entity, is also an investor in SambaNova. Notable investment from SoftBank Group of Japan, which increased its stake in Intel earlier, further connected the firms.

Company Background and Financial Prowess

SambaNova Systems, founded in 2017 by Stanford professors and a former Oracle executive, is based in Palo Alto, California. The startup develops advanced AI chip platforms tailored for inference computing, enabling the processing of large-scale data by AI models.

By early 2025, SambaNova had amassed $1.14 billion in funding as per PitchBook. In 2020, it secured $250 million from key investors, including BlackRock and Intel Capital, marking a valuation of $2.5 billion. A significant funding surge in 2021, driven by SoftBank’s Vision Fund 2, raised this valuation to $5 billion.

Recently, however, SambaNova’s valuation has faced reductions. According to The Information, BlackRock's valuation of the company decreased by 17% last year, potentially motivating Intel's interest given its efforts to enhance its standing in AI chip technology.

Intel’s Strategic Directions

Since assuming leadership earlier this year, Intel CEO Tan has outlined goals to resolve Intel’s financial challenges, divest non-essential operations, and pivot towards an AI-centric approach. To support these initiatives, Intel received a substantial $8.9 billion capital boost in August, earmarked to expand its domestic semiconductor production capabilities.