Intel pushes deeper into AI hardware market with $1.6 billion SambaNova acquisition talks

Intel moves deeper into a chaotic AI battle with SambaNova takeover

SambaNova showcases its hardware strength through DeepSeek model deployment claims AMD and Nvidia's growing influence in artificial intelligence hardware has put pressure on Intel, prompting it to pursue the acquisition of SambaNova Systems. The company has signed a term sheet that outlines a potential deal, according to sources who spoke to Wired. The agreement remains non-binding, and it can still be withdrawn without penalty. Intel and SambaNova have not issued any official public statement regarding the deal. Deliberations remain in early stages, and the timeline for regulatory checks, financial reviews, and detailed negotiations may extend for months. The backdrop to Intel's interest includes rapid advances by companies such as DeepSeek, which drew wide attention in 2025 for the performance of its R1 model. The model has demonstrated reasoning capabilities competitive with leading systems while maintaining lower operating costs. SambaNova recently announced what it describes as the fastest deployment of the DeepSeek-R1 671B model using its custom hardware. The company claims it achieved 198 tokens per second for each user with only sixteen of its processors, replacing configurations that would normally require extensive GPU racks. SambaNova was founded in 2017 by a group of Stanford-affiliated researchers and an experienced Oracle executive. The company secured $1.14 billion in funding by early 2025 and reached a valuation of $5 billion during a SoftBank-led round in 2021. Its shift toward inference-focused systems marked a strategic response to Nvidia's dominance in model training hardware. The startup now offers both cloud-based and on-premises solutions and reduced its workforce earlier this year. Reports indicate that SambaNova could be sold at a price below its previous valuation, although the exact terms remain undisclosed. Intel's potential acquisition may be influenced by its existing connections, since its CEO, Lip-Bu Tan, previously held senior roles within SambaNova. The company recently received substantial US government support, and discussions have surfaced about the government potentially taking a stake in Intel itself. These developments create an environment in which strategic purchases gain additional relevance. There are also reports that the startup is in discussion with other prospective buyers, which implies that Intel is not alone in the race, and there could be another bidder.

Report: Intel could acquire inference chip startup SambaNova for $1.6B - SiliconANGLE

Report: Intel could acquire inference chip startup SambaNova for $1.6B Intel Corp. is reportedly in talks to acquire SambaNova Systems Inc., a venture-backed developer of artificial intelligence chips. Bloomberg today cited sources as saying that the discussions are in an advanced stage. It's believed that an acquisition could value SambaNova at $1.6 billion including debt. If it materializes, the deal would mark Intel's first major startup purchase under Chief Executive Officer Lip-Bu Tan, who joined the company in March. Palo Alto, California-based SambaNova sells an AI chip called the SN40L. It's optimized for inference, or the task of running AI models in production after they're trained. One of the chip's main selling points is its power efficiency: SambaNova claims that it can generate more tokens per kilowatt hour than comparable processors from rivals. The process through which an AI model answers a user prompt comprises numerous steps. After completing a step, the model saves its calculation results to memory and then moves them from memory to its host chip's cores so that the next step may begin. That data movement accounts for a significant percentage of AI chips' power consumption. According to SambaNova, the SN40L significantly lowers data movement. It achieves that partly by compressing multiple inference-related calculations into a single operation, which reduces the number of memory round-trips necessary to process data. SN40L keeps data in three types of memory: high-speed SRAM, HBM and DRAM. SambaNova says that its chip also provides other benefits. The SN40L's use of three memory varieties enables it to quickly load an AI model when users enter a prompt, which reduces wait times. Additionally, the company claims that the chip is capable of rapidly switching between different AI models when necessary. SambaNova ships the SN40L as part of an appliance called the SambaRack that includes 16 chips. It runs a custom software toolkit, the SambaStack, that supports popular open-source large language models. The company also provides access to its chips through a cloud service that doesn't require customers to manage any hardware. In 2018, SambaNova raised a $56 million funding round led by Walden International, Lip-Bu Tan's venture capital firm. Tan is the chip startup's executive chair. SambaNova later raised a $676 million round led by SoftBank Group Corp. that gave it a $5 billion valuation. According to today's report, Intel could close the acquisition as early as next month. However, Bloomberg's sources cautioned that the timing of the deal may change. Furthermore, there's reportedly a possibility SambaNova will opt against a sale to Intel. The company is believed to have signed terms sheets with multiple potential investors.

Intel nears $1.6 billion deal for AI startup SambaNova: Report - The Economic Times

The deal has not yet been disclosed and could be initiated as soon as next month, the report added. However, the terms and timing of the transaction could change. It is also possible that SambaNova, which has signed term sheets with other prospective financial investors, could choose to pursue an alternative path.Intel is in advanced talks to acquire artificial intelligence (AI) startup SambaNova Systems in a $1.6 billion deal that includes debt, according to a Bloomberg report published on Saturday. The deal has not yet been disclosed and could be initiated as soon as next month, the report added. However, the terms and timing of the transaction could change. It is also possible that SambaNova, which has signed term sheets with other prospective financial investors, could choose to pursue an alternative path. Palo Alto-based startup SambaNova designs custom AI chips and was valued at $5 billion in 2021 after a $676 million funding round led by SoftBank Group's Vision Fund II. The acquisition would help Intel strengthen its AI offerings and secure a long-sought platform at a significant discount to the startup's previous valuation. Notably, Intel chief executive officer Lip-Bu Tan is also the chairman of SambaNova. His venture capital firm, Walden International, was among the company's founding investors and led a $56 million Series A funding round in 2018. Meanwhile, Intel CEO Tan, on his first visit to India, met Prime Minister Narendra Modi on Thursday. He told Modi that India's long-term success in artificial intelligence (AI) and chipmaking will depend on scale, strong domestic leadership, and deep engineering capability. On Monday, Intel and Tata Group signed a Memorandum of Understanding (MoU) to explore manufacturing and packaging Intel products at upcoming Fab and OSAT (Outsourced Semiconductor Assembly and Test) facilities. These components will feed into India-built AI PCs. Also Read: Bring back Indian engineers for semicon manufacturing boost: Intel CEO

Intel in Talks to Acquire SambaNova in Deal Valued at $1.6 Billion, Bloomberg Reports, Citing Sources

--Intel is in advanced talks to acquire SambaNova Systems for about $1.6 billion including debt, Bloomberg reported, citing people familiar with the matter. --A deal for the artificial intelligence chip startup may come together as soon as next month, the people said, according to Bloomberg. --SambaNova could also pursue another path, and has signed term sheets with other potential investors, the people said, according to the report. --Representatives for Intel and SambaNova declined to comment, Bloomberg said.