Intel is holding advanced discussions to acquire artificial intelligence startup SambaNova Systems in a deal valued at $1.6 billion, including debt, as reported on Saturday.
According to the report, the companies have not yet disclosed the transaction, and Intel could initiate the deal as early as next month. However, the structure and timing remain subject to change. In parallel, SambaNova has signed term sheets with other potential financial investors and could still opt for an alternative course.
Based in Palo Alto, SambaNova develops custom AI chips and reached a $5 billion valuation in 2021 after raising $676 million in a funding round led by SoftBank Group’s Vision Fund II. Through this acquisition, Intel would significantly bolster its AI portfolio while gaining access to a long-sought platform at a steep discount to the startup’s previous valuation.
Notably, Intel chief executive officer Lip-Bu Tan also serves as chairman of SambaNova. In addition, his venture capital firm, Walden International, was among the startup’s founding backers and led its $56 million Series A funding round in 2018.
Meanwhile, during his first visit to India, Tan met Prime Minister Narendra Modi on Thursday. During the meeting, he said that India’s long-term success in artificial intelligence and chipmaking will depend on scale, strong domestic leadership, and deep engineering capability.
Separately, on Monday, Intel and Tata Group signed a Memorandum of Understanding to explore the manufacturing and packaging of Intel products at upcoming fab and OSAT facilities. These components will, in turn, support the production of AI-powered PCs built in India.
