Intel Moves Toward Acquiring SambaNova Systems, a Major AI Chip Startup
Intel has progressed with a non-binding term sheet to purchase SambaNova Systems, according to two sources with direct knowledge of the negotiations. The exact terms remain undisclosed, and the agreement could still be terminated without penalties. Regulators, liability reviews, and due diligence must run their course, which could take several weeks or even months before a deal is finalized.
Initial reporting on Intel’s interest appeared in Bloomberg in late October, noting the talks were in early stages and that SambaNova might command a valuation below the $5 billion it reached in April 2021. The broader context suggested a potential sale at a reduced price from that peak.
Several ties link Intel and SambaNova. Intel CEO Lip-Bu Tan also serves as SambaNova’s chairman, and Intel Capital has invested in SambaNova. SoftBank Group, a notable investor in SambaNova, has previously invested in Intel, highlighting a web of cross-ownership across the semiconductor landscape.
SambaNova declined to comment for this piece, and Intel had not issued a statement at the time of publication.
Background on SambaNova: founded in 2017 in Palo Alto, California, by Kunle Olukotun, Rodrigo Liang, and Christopher Ré. Olukotun and Ré are Stanford professors; Liang has experience as an Oracle executive. The company develops an AI chip platform aimed at inference computing, helping large language models generate predictions from large data sets.
Funding history shows SambaNova raising about $1.14 billion by early 2025, per PitchBook. A 2020 round of $250 million included BlackRock, Intel Capital, GV, and others, valuing the startup at about $2.5 billion. A subsequent 2021 round of $676 million, led by SoftBank Vision Fund 2, pushed the valuation to roughly $5 billion. More recently, reports from The Information suggest BlackRock reduced its SambaNova holdings’ value by around 17 percent, which may have influenced strategic interest fromIntel and other potential buyers.
In leadership moves, Intel’s CEO has signaled a broader strategy to strengthen balance sheets, spin off non-core assets, and push an AI-first approach. The company also secured an $8.9 billion government infusion to bolster domestic semiconductor manufacturing—funds aimed at expanding United States-based production and supply resilience.
Why this matters: if Intel finalizes the SambaNova deal, it could accelerate Intel’s AI chip ambitions at a time when the industry is racing to scale inference accelerators and edge compute capabilities. Critics may question whether SambaNova’s valuation and growth trajectory justify a sale, while supporters could argue that Intel’s track record in integration and manufacturing could unlock SambaNova’s technology more rapidly. Is this move a smart bet on the future of AI hardware, or a strategic misread of SambaNova’s long-term potential? Share your thoughts below.
