Intel nears $1.6 billion deal for AI startup SambaNova: Report

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 (VC) firm, Walden International, was among the company’s founding investors and led a $56 million Series A funding round in 2018.

Meanwhile, Tan, on his first visit to India, met Prime Minister Narendra Modi on Thursday. He told Modi that India's long-term success in AI and chipmaking will depend on scale, strong domestic leadership, and deep engineering capability.

On Monday, Intel and the Tata Group signed a memorandum of understanding (MoU) to explore manufacturing and packaging Intel products at the upcoming Fab and outsourced semiconductor assembly and test (OSAT) facilities. These components will be used in India-built AI personal computers (PCs).

Also Read: Bring back Indian engineers for semicon manufacturing boost: Intel CEO