Intel moves to acquire SambaNova for $1.6 billion as AI chip battle with Nvidia intensifies
7 Sources
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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
[2]
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
[3]
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
[4]
Intel Eyes $1.6 Billion AI Chip Buy As It Takes On Nvidia's Turf - Intel (NASDAQ:INTC)
Intel Corp. (NASDAQ:INTC) is in advanced talks to buy artificial intelligence chip startup SambaNova Systems for about $1.6 billion, including debt, sources said. The Palo Alto-based deal could close as soon as next month. Additionally, SambaNova could pursue another option, as it has signed term
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Intel Is Eyeing an AI Acquisition. Its Track Record Isn't Great. | The Motley Fool
Intel's last AI acquisition didn't work out, but this time could be different. Chip giant Intel (INTC 0.79%) is reportedly in talks to potentially acquire SambaNova Systems, an AI start-up that was once valued at $5 billion. The rumored price tag is much lower at $1.6 billion, according to
[6]
Intel stock rises amid tech strength and SambaNova acquisition talks By Investing.com
Investing.com -- Intel (NASDAQ:INTC) stock rose 1.25% Monday amid broader strength in the technology sector and following reports that the chipmaker is nearing a $1.6 billion acquisition of AI chip startup SambaNova Systems. According to a Bloomberg report published Friday, Intel is in advanced
[7]
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
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Intel is in advanced acquisition discussions to buy AI chip startup SambaNova Systems for $1.6 billion including debt, marking a steep discount from its $5 billion valuation in 2021. The deal would strengthen Intel's position in AI inference solutions as it competes against Nvidia's market dominance in the AI hardware market.
Intel Pursues Strategic AI Chip Acquisition
Intel is in advanced acquisition discussions to buy SambaNova Systems, an AI chip startup specializing in inference solutions, for approximately $1.6 billion including debt
2
. The Intel acquisition of SambaNova could close as soon as next month, though the deal remains non-binding and SambaNova has signed term sheets with other potential investors3
. The transaction would mark Intel's first major startup purchase under CEO Lip-Bu Tan, who joined the company in March and notably serves as SambaNova's chairman4
.
Source: Benzinga
Sharp Discount from Previous Company Valuation
The proposed acquisition price represents a significant markdown from SambaNova's previous company valuation. The Palo Alto-based startup reached a $5 billion valuation during a 2021 funding round led by SoftBank's Vision Fund II, which invested $676 million
3
. Founded in 2017 by Stanford-affiliated researchers, SambaNova secured $1.14 billion in total funding by early 20251
. Intel CEO Lip-Bu Tan's venture capital firm, Walden International, led SambaNova's $56 million Series A funding round in 2018, establishing early connections between the two companies2
.
Source: ET
Custom AI Hardware Targets Inference Efficiency
SambaNova develops custom AI hardware focused on AI inference, the process of running AI models in production after training. The company's flagship product, the SN40L chip, is designed for power efficiency and can generate more tokens per kilowatt hour than comparable processors
2
. The chip reduces power consumption by compressing multiple inference-related calculations into a single operation, minimizing data movement between memory and processor cores. SambaNova ships the SN40L as part of the SambaRack appliance, which includes 16 chips and runs a custom software toolkit supporting popular open-source large language models2
. The company recently announced what it describes as the fastest deployment of the DeepSeek-R1 671B model, achieving 198 tokens per second for each user with only 16 processors1
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Intel's Move Against Nvidia in AI Hardware Market
The acquisition represents Intel's strategic investment to compete in the AI hardware market, where Nvidia has established market dominance. Intel's previous AI training chip efforts, including the Habana Labs acquisition for approximately $2 billion in 2019, failed to gain traction against Nvidia's GPUs and mature CUDA software ecosystem
5
. The company eventually scrapped Falcon Shores, a data center GPU project, effectively ending its attempt to break into the AI training market5
. However, the AI inference solutions market remains more competitive, where efficiency matters as much as raw performance. SambaNova has already secured deals to power sovereign AI inference clouds in Australia, Europe, and the United Kingdom, and was selected by French cloud computing company OVHcloud for its AI Endpoints solution5
.
Source: TechRadar
Data Center Market Strategy Shifts to Rack-Scale Solutions
Acquiring SambaNova aligns with Intel's pivot toward rack-scale AI solutions for the data center market. When Intel cancelled Falcon Shores earlier this year, it announced plans to pursue a rack-scale AI strategy by developing fully integrated systems that could be installed directly in data centers
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. SambaNova offers both cloud-based and on-premises AI inference solutions, providing complete rack-scale systems rather than just AI chips1
. This approach could help Intel gain ground faster than developing similar capabilities internally. Intel held $11.14 billion in cash and cash equivalents as of September 2025, providing financial capacity for the acquisition4
. The company recently received substantial U.S. government support, and discussions have surfaced about potential government stakes in Intel itself, creating an environment where strategic acquisitions gain additional relevance1
.References
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