Intel Nears $1.6 Billion Acquisition of AI Chip Startup SambaNova
Intel Corp. is in advanced discussions to acquire SambaNova Systems, an AI chip startup, for approximately $1.6 billion including debt. The deal, which could close as early as next month, WOULD provide Intel with a competitive AI chip platform at a significant discount to SambaNova's 2021 valuation of $5 billion.
SambaNova, founded by Stanford professors in 2017, specializes in custom AI chips designed to rival Nvidia's offerings. Intel CEO Lip-Bu Tan serves as chairman of the startup, and his venture capital firm was an early investor. The acquisition comes as Intel's stock has surged 60% since August, when the U.S. government announced plans to take a 10% stake in the chipmaker.
While SambaNova has other financing options on the table, including term sheets with potential investors, the Intel deal represents a strategic MOVE to bolster its AI capabilities. Neither company has commented publicly on the negotiations.
