According to sources familiar with the matter, Intel is in advanced talks to acquire artificial intelligence chip startup SambaNova Systems, with the total valuation, including debt, estimated at approximately $1.6 billion.
The aforementioned sources, who requested anonymity to maintain confidentiality, stated that the deal for Palo Alto, California-based SambaNova could be finalized as early as next month.
The sources added that while negotiations are in their late stages, the terms and timelines are still subject to change. Furthermore, SambaNova has previously signed term sheets with other potential financial investors, so the possibility of the company pursuing other development paths cannot be ruled out.
Representatives for both Intel and SambaNova declined to comment.
About SambaNova
Founded in 2017 by a team of professors from Stanford University, one of whom was a MacArthur Genius Grant recipient, SambaNova focuses on designing and developing custom AI chips, aiming to compete with Nvidia's offerings.
Notably, Intel CEO Lip-Bu Tan also serves as SambaNova's chairman. His venture capital firm, Walden International, was one of SambaNova's founding investors and led a $56 million Series A funding round in 2018.
The $1.6 billion acquisition of SambaNova will provide Intel with the technology platform it has long sought, helping to complete its AI product portfolio. The acquisition price represents a significant discount compared to the company's previous valuation. SambaNova previously raised $676 million in a 2021 funding round led by SoftBank Vision Fund II, valuing the company at $5 billion at the time.
Since the U.S. government announced its intention to acquire a 10% stake in Intel in August, the company's stock price has continued to rise. Prior to the announcement, its stock price had increased by approximately 60%. However, in Friday's trading in New York, Intel's stock price fell 4.3%, closing at $37.81, giving the company a current market capitalization of approximately $180 billion.
Source: Bloomberg
