Intel Nears $1.6-B Deal for AI Chip Startup SambaNova

Intel Corp. is in advanced talks to acquire artificial intelligence chip startup SambaNova Systems Inc. for about $1.6 billion, including debt, according to people familiar with the matter, Ryan Gould and Dina Bass reported for Bloomberg News.

At $1.6 billion, an acquisition of SambaNova would give Intel a long-sought platform to expand its AI product offerings. (Photo: SambaNova)

A deal for Palo Alto, California-based SambaNova could come together as soon as next month, the people said, asking not to be identified because the information is confidential.

While discussions are advanced, the terms and timing could still change.

It is also possible that SambaNova, which has signed term sheets with other potential financial investors, could pursue another path, the sources added.

Founded in 2017 by Stanford University professors — one of whom won a MacArthur “Genius” Award — SambaNova designs custom AI chips aimed at rivaling those offered by Nvidia Corp.

Intel Chief Executive Officer Lip-Bu Tan is chairman of SambaNova. His venture capital firm, Walden International, was among the company’s founding investors, having led a $56 million Series A funding round in 2018.

At $1.6 billion, an acquisition of SambaNova would give Intel a long-sought platform to expand its AI product offerings — and at a discount.