Intel just took a major step toward acquiring AI chip startup SambaNova Systems, signing a non-binding term sheet that could reshape the competitive landscape in artificial intelligence semiconductors. The deal, first reported by WIRED, marks Intel’s latest push to catch up in the AI chip race where it’s been trailing behind Nvidia and other competitors.
Intel is making its boldest move yet to close the AI chip gap. The semiconductor giant has signed a term sheet to acquire SambaNova Systems, the Palo Alto-based AI chip startup, according to two sources with direct knowledge of the agreement who spoke to WIRED.
The timing couldn’t be more strategic. SambaNova, once valued at $5 billion during the 2021 funding frenzy, has seen its star fade as the AI chip market consolidated around Nvidia’s dominance. BlackRock reportedly slashed the value of its SambaNova shares by 17% over the past year, creating an opening for Intel to swoop in at a discount.
The deal dynamics reveal just how intertwined these companies already are. Intel CEO Lip-Bu Tan currently serves as chairman of SambaNova, while Intel Capital has invested in the startup. Adding another layer, SoftBank – which led SambaNova’s massive $676 million Series D round in 2021 – made a major investment in Intel earlier this year.
“The agreement is non-binding, meaning the deal is not yet finalized and could be dissolved without penalty,” the WIRED report notes. The companies now face weeks or months of regulatory approval, liability scrutiny, and financial due diligence.
SambaNova brings serious AI credentials to the table. Founded in 2017 by Stanford professors Kunle Olukotun and Christopher Ré alongside Oracle veteran Rodrigo Liang, the company has raised $1.14 billion total and specializes in inference computing – the process where large language models make predictions from data.
For Intel, this acquisition represents a lifeline in the AI chip wars. The company has struggled to compete with Nvidia’s GPU dominance in AI training and inference, despite its historical leadership in CPUs. Intel’s data center revenue has been under pressure as customers increasingly choose specialized AI chips over traditional processors.
