Intel takes a big step in its SambaNova startup chip acquisition program
Intel has signed Sheet to acquire artificial intelligence chip startup SambaNova Systems, two sources with direct knowledge of the deal tell WIRED.
The term sheet details are unknown. The agreement is non-binding, meaning the deal is not yet finalized and can be terminated without penalty. It can take weeks or even months for regulatory approval, liability review and financial due diligence to be completed.
Intel’s interest in buying the startup was first reported by Bloomberg in late October. At the time, negotiations were in their early stages. The report noted that SambaNova could sell for less than the $5 billion valuation the company said it would reach in April 2021.
Notably, Intel CEO Lip Bo Tan is currently the executive chairman of SambaNova Systems. Intel Investments, which Intel is turning into a standalone fund, has also invested in SambaNova Systems. Another SambaNova investor, Japan’s SoftBank Group, made a major investment in Intel earlier this year.
A spokeswoman for SambaNova declined to comment. Intel had not responded to requests for comment at the time of publication.
SambaNova Systems was founded in 2017 in Palo Alto, California by Kunle Olukoton, Rodrigo Liang and Christopher Ré. Olukoton and Ré are professors at Stanford. Liang previously worked as an executive at Oracle. SambaNova Systems builds an artificial intelligence chip platform for inferential computing, the process in which large language models make predictions from vast amounts of data.
By early 2025, the startup had raised $1.14 billion in funding, according to PitchBook data. In 2020, it raised $250 million from asset manager BlackRock, Intel Capital, GV Ventures and other investors, valuing the startup at $2.5 billion. The following year, SambaNova was valued at $5 billion after a massive $676 million investment round led by SoftBank’s Vision Fund 2.
The startup’s implied valuation has since declined, with BlackRock reportedly cutting its stake in SambaNova by 17% in the past year, according to The Information. This likely makes it a target for Intel, along with the fact that Intel has lagged behind the rest of the chip industry in making AI chips.
After taking over the role earlier this year, Intel CEO Tan said he plans to pay down Intel’s debt, divest the company of non-core assets and shift toward artificial intelligence strategies. The troubled chipmaker also received $8.9 billion in capital from the US government in August, which it plans to use to expand domestic semiconductor production.
