Intel Corp. is in preliminary talks to acquire SambaNova Systems Inc., an artificial intelligence chip startup. According to people familiar with the matter, discussions on the acquisition are still in the early stages, and specific transaction conditions and timetable have not yet been determined.
SambaNova Systems was founded in 2017 and is known for its advanced AI chip technology. The company has raised more than US$1.1 billion in total, with investors including Intel Capital, SoftBank Vision Fund, etc. It was last valued at $5 billion, but could face a significant cut in its valuation.
Intel’s strategic layout in the AI field includes multiple acquisitions in the past, such as the acquisition of Nervana Systems in 2016 to enter the deep learning training chip market, and the acquisition of Movidius in the same year to increase the AI computing power of endpoint devices. In 2022, Intel acquired Tower Semiconductor, an Israeli wafer foundry, for US$5.4 billion to further expand its wafer manufacturing capabilities.
NVIDIA is the undisputed leader in the field of AI training and inference, but it faces challenges from companies such as Intel Habana and SambaNova Systems. The AI chip market is expected to reach more than US$70 billion in 2025, accounting for more than 10% of the overall chip market.
SambaNova is experiencing difficulties in sales growth and is exploring a sale. This acquisition will help Intel enhance its competitiveness in the rapidly growing artificial intelligence market and demonstrate its emphasis on future technology trends.
Intel in Talks to Acquire AI Chip Startup SambaNova