Intel is making a big move in its plan to acquire chip startup SambaNova

Intel has signed a term sheet to acquire AI chip startup SambaNova Systems, two sources with direct knowledge of the agreement told WIRED.

Term sheet details are unknown. The agreement is non-binding, meaning the deal has not yet been finalized and can be dissolved without penalty. It may take weeks or even months before regulatory approval, liability audits, and financial due diligence are completed.

Intel’s interest in acquiring the startup was the first Reported by Bloomberg In late October. At the time, the talks were in their early stages. The report indicated that SambaNova could sell for less than the $5 billion valuation it reached in April 2021.

It is worth noting that Intel CEO, Lip Bo Tan, currently serves as Chairman of the Board of Directors of SambaNova Systems. Intel Capital, which Intel is turning into a standalone fund, has also invested in SambaNova Systems. Another SambaNova investor, Japanese conglomerate SoftBank, has had great success Great investment At Intel earlier this year.

A SambaNova spokesman declined to comment. Intel did not respond to requests for comment at the time of publication.

SambaNova Systems was founded in 2017 in Palo Alto, California, by Kunle Olokotun, Rodrigo Liang, and Christopher Rhee. Olokotun and Rhee are professors at Stanford University. Liang previously served as an executive at Oracle. SambaNova Systems makes an AI chip platform for inferential computing, a process in which large language models make predictions from massive amounts of data.

As of early 2025, the startup has raised $1.14 billion in funding, according to PitchBook data. In 2020, it raised $250 million from asset management firm BlackRock, Intel Capital, venture firm GV, and other investors, raising the startup’s valuation to $2.5 billion. The following year, SambaNova was valued at $5 billion after a massive $676 million financing round, led by SoftBank’s Vision 2 Fund.

The startup’s implied valuation has since fallen, along with BlackRock It is said to have reduced the value of its shares in SambaNova By 17 percent over the past year, according to the information. This likely made it a target for Intel, coupled with the fact that Intel has lagged behind the rest of the chip industry in making AI chips.

After taking the top job earlier this year, Intel CEO Tan said he intends to shore up Intel’s debt, spin off the company’s non-core assets, and shift to AI-first strategies. The struggling chipmaker also received an $8.9 billion capital infusion From the US government in August, which it plans to use to expand domestic semiconductor manufacturing.