Intel Corp. is reportedly in preliminary discussions to acquire SambaNova Systems Inc., an artificial intelligence (AI) chip startup, according to sources familiar with the matter.
The talks remain in the early stages, with Intel exploring potential terms while SambaNova, advised by bankers, gauges interest from possible acquirers. Sources indicate that any deal would likely value the company below the $5 billion valuation it achieved during its 2021 funding round.
Although discussions are ongoing, there’s no certainty the two companies will reach an agreement. Other potential buyers may also emerge, the sources added.
A SambaNova spokesperson said the company continues to evaluate strategic opportunities aligned with its mission and stakeholder interests but declined to provide additional details. Intel representatives also declined to comment.
Founded in 2017 by Stanford University professors, including a MacArthur Genius Award recipient, the startup develops custom AI chips designed to compete with those from Nvidia Corp. An acquisition would reunite Intel CEO Lip-Bu Tan with a company he knows well—Tan previously served as SambaNova’s executive chairman and led its $56 million Series A through his venture capital firm Walden International.
In 2021, the startup raised $676 million in a round led by SoftBank Group Corp., valuing it at $5 billion. Since then, the AI chip market has accelerated with the rise of generative AI tools such as ChatGPT. While Nvidia dominates the training chip segment, SambaNova has shifted focus toward AI inference systems—running pre-trained models—and now offers AI cloud services on its own hardware.
Earlier this year, the company reportedly laid off 15% of its workforce as part of a strategic restructuring effort.
