Intel Corporation is advancing toward a potential acquisition of AI chipmaker SambaNova Systems after signing a non binding term sheet with the Palo Alto based startup, as reported by a common news platform. The agreement marks a meaningful step in ongoing discussions, although the deal still depends on due diligence, regulatory clearances and financial reviews that may continue for several more weeks or months.
The development comes at a critical time for both companies. A major point of attention is that Intel CEO Lip Bu Tan also holds the role of chairman at SambaNova, raising governance questions as talks progress. Intel Capital is already an investor in SambaNova, adding further complexity to the process.
SambaNova was founded by Kunle Olukotun, Christopher Ré and Rodrigo Liang. The company has emerged as a strong competitor in the AI hardware space and has raised more than $1.14 billion from major investors including BlackRock, GV, Intel Capital and SoftBank Vision Fund 2. However, its valuation has declined since hitting a peak of $5 billion in 2021, reflecting a broader market correction in the AI hardware segment.
For Intel, pursuing SambaNova highlights its intensified AI first strategy under Tan’s leadership. The company continues to face pressure to close the performance gap with NVIDIA, especially as AI models demand more powerful and efficient computing infrastructure. The recent $8.9 billion funding boost from the U.S. government for domestic semiconductor manufacturing also strengthens Intel’s ability to pursue strategic acquisitions that support national priorities in AI and chip production.
SoftBank’s growing alignment with Intel further adds momentum to the potential deal, making SambaNova an attractive fit. As Intel aims to rebuild its leadership in next generation compute systems, integrating SambaNova’s technologies could offer a significant strategic edge.
While the agreement is not final, Intel’s move reflects a strong intention to expand more aggressively in AI hardware. If the acquisition goes through, it could influence the competitive landscape of the global AI chip market and accelerate Intel’s efforts to regain technological and market leadership.
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