Intel Takes Major Step in Plan to Acquire Chip Startup SambaNova
Summary
Intel has signed a non-binding term sheet to acquire AI chip startup SambaNova Systems, according to sources cited by WIRED. The agreement is an important procedural step but not final — regulatory approval, liability reviews and financial due diligence still lie ahead and could take weeks or months. Key links between the firms include Intel CEO Lip-Bu Tan serving as SambaNova’s chairman and prior investment from Intel Capital; SoftBank is another major investor in SambaNova and recently put money into Intel.
SambaNova, founded in 2017, builds hardware and systems for inference computing used by large language models. The company raised roughly $1.14bn to date but has seen implied valuation declines since its 2021 high of $5bn, making it a potential takeover target as Intel races to catch up in AI-focused chip design.
Key Points
- Intel signed a non-binding term sheet to buy SambaNova; details of the deal (price, structure) have not been disclosed.
- The agreement is preliminary — completion depends on regulatory sign-off, liability checks and financial due diligence, which could take considerable time.
- Lip-Bu Tan, Intel’s CEO, is also chairman of SambaNova; Intel Capital has previously invested in SambaNova, creating notable overlap.
- SambaNova makes inference-focused AI chip platforms used for large language models and raised about $1.14bn; its valuation peaked around $5bn in 2021 but has since been written down by some investors.
- Intel has strategic reasons to acquire SambaNova: it has been trailing peers in AI chips and is pursuing an AI-first shift, asset spin-offs and debt reduction under Tan’s leadership, supported by recent government and private capital infusions.
Context and Relevance
This potential acquisition sits at the crossroads of the current AI hardware scramble and industry consolidation. Big chipmakers are racing to secure talent, IP and product lines that accelerate deployment of inference and training hardware for large models. For Intel, buying SambaNova would be a fast route to bolster its AI portfolio and expertise rather than building everything in-house — especially given SambaNova’s pedigree, investments and product focus.
For readers tracking semiconductor strategy, cloud infrastructure or AI supply chains, this is a meaningful development: it signals how legacy chip firms may acquire startups to close capability gaps, and it could reshape vendor options for data-centre AI hardware. It also underlines the role of prior investors and governance ties (SoftBank, Intel Capital, Lip-Bu Tan) in steering consolidation moves.
Why should I read this?
Short version: this could change who makes the chips that run big AI models. If you care about AI infrastructure, semiconductors or who wins in the next wave of hardware, this is worth a quick read — it’s a major strategic play by Intel, not just another funding blip.
Source
Source: https://www.wired.com/story/intel-signs-term-sheet-sambanova-ai/