Intel Takes Major Step in Plan to Acquire Chip Startup SambaNova

Intel has signed a word expanse to get the AI spot startup SambaNova Systems, 2 sources with nonstop cognition of the statement archer WIRED.

The details of the word expanse are unknown. The statement is non-binding, meaning the woody is not yet finalized and could beryllium dissolved without penalty. It could instrumentality weeks oregon adjacent months earlier regulatory approval, liability scrutiny, and fiscal owed diligence are complete.

Intel’s involvement successful acquiring the startup was archetypal reported by Bloomberg successful precocious October. At the time, the talks were successful the aboriginal stages. The study noted that SambaNova could merchantability for little than the $5 cardinal valuation it had reached successful April 2021.

Notably, Intel CEO Lip-Bu Tan is presently the president of SambaNova Systems. Intel Capital, which Intel is successful the process of spinning disconnected into a standalone fund, has besides invested successful SambaNova Systems. Another capitalist successful SambaNova, Japan’s SoftBank Group, made a large concern successful Intel earlier this year.

A spokesperson for SambaNova declined to comment. Intel had not yet responded to requests for remark astatine the clip of publication.

SambaNova Systems was founded successful 2017 successful Palo Alto, California by Kunle Olukotun, Rodrigo Liang, and Christopher Ré. Olukotun and Ré are Stanford professors; Liang antecedently worked arsenic an enforcement astatine Oracle. SambaNova Systems makes an AI spot level for inference computing, a process wherever ample connection models marque predictions from immense amounts of data.

As of aboriginal 2025, the startup had raised a full of $1.14 cardinal successful funding, according to PitchBook data. In 2020 it raised $250 cardinal from plus manager BlackRock, Intel Capital, the task steadfast GV, and different investors, bringing the startup’s valuation to $2.5 billion. The pursuing year, SambaNova was valued astatine $5 cardinal aft a monolithic backing circular of $676 million, led by SoftBank’s Vision Fund 2.

However, the startup’s implied valuation has dropped since then, with BlackRock reportedly cutting the worth of its SambaNova shares by 17 percent implicit the past year, according to The Information. That apt made it a people for Intel, on with the information that Intel has lagged the remainder of the spot manufacture successful making AI chips.

After taking connected the apical occupation earlier this year, Intel CEO Tan said helium intends to enactment up Intel’s debt, rotation disconnected the company’s non-core assets, and displacement to AI-first strategies. The troubled chipmaker besides received an $8.9 cardinal infusion of superior from the US authorities successful August, which it plans to usage to grow home semiconductor manufacturing.