Intel has taken a significant step toward acquiring AI chip startup SambaNova Systems by signing a non-binding term sheet, according to exclusive information obtained by WIRED from two sources with direct knowledge of the agreement. This development marks a crucial advancement in Intel’s strategic pivot toward artificial intelligence technologies.
While financial specifics remain undisclosed, this preliminary agreement signals serious intent from the semiconductor giant. However, the non-binding nature means both parties can still walk away without penalties as they navigate the complex path toward a final deal. The acquisition process could extend for months as regulatory approvals, liability assessments, and financial due diligence are completed.
Background on the Acquisition Talks
Industry observers first learned of Intel’s interest in SambaNova Systems through Bloomberg reporting in late October. At that time, discussions were described as preliminary. Current indications suggest SambaNova’s valuation in any potential deal would likely fall below its peak $5 billion valuation from April 2021 – a reflection of changing market conditions in the AI sector.
An interesting dynamic in this potential acquisition is the existing relationship between the companies. Intel CEO Lip-Bu Tan currently serves as SambaNova Systems’ chairman, creating a direct leadership connection. Additionally, Intel Capital has previously invested in SambaNova, though Intel is currently spinning this investment arm into an independent fund. Another key investor in SambaNova, SoftBank Group, made a substantial investment in Intel earlier this year, further intertwining the companies’ financial relationships.
When approached for comment, SambaNova declined to provide any statement regarding the potential acquisition. Intel had not responded to inquiries at the time this information became public.
SambaNova’s Company Profile
Founded in 2017 in Palo Alto, California, SambaNova Systems emerged from the expertise of three co-founders: Stanford professors Kunle Olukotun and Christopher Ré, alongside former Oracle executive Rodrigo Liang. The company has established itself in the competitive AI chip market by focusing on inference computing platforms – specialized hardware that enables large language models to efficiently process and generate predictions from massive datasets.
SambaNova’s funding history demonstrates significant investor confidence in its technology. By early 2025, the startup had accumulated approximately $1.14 billion in total funding according to PitchBook data. A 2020 funding round brought in $250 million from prominent investors including BlackRock, Intel Capital, and GV (formerly Google Ventures), valuing the company at $2.5 billion. The following year saw an even more substantial capital infusion of $676 million, led by SoftBank’s Vision Fund 2, which pushed SambaNova’s valuation to $5 billion.
Recent reports from The Information indicate BlackRock has reduced the value of its SambaNova shares by approximately 17 percent over the past year, suggesting a downward adjustment in the company’s market valuation. This valuation decline likely increased SambaNova’s attractiveness as an acquisition target for Intel.
Strategic Significance for Intel
This potential acquisition aligns perfectly with Intel’s strategic repositioning under CEO Lip-Bu Tan’s leadership. Since taking the helm earlier this year, Tan has outlined a clear roadmap: reduce Intel’s debt burden, divest non-core assets, and aggressively pivot toward AI-focused strategies. The semiconductor manufacturer has notably lagged behind competitors in developing specialized AI chips, making SambaNova’s technology portfolio particularly valuable.
Intel’s financial position for such an acquisition was recently bolstered by an $8.9 billion capital infusion from the U.S. government in August. These funds, earmarked for expanding domestic semiconductor manufacturing capabilities, provide Intel with greater flexibility in pursuing strategic acquisitions like SambaNova.
The potential acquisition represents more than just a technology purchase – it signals Intel’s determination to reclaim its position at the forefront of the semiconductor industry by building capabilities in the rapidly growing AI chip segment. By acquiring SambaNova’s specialized inference computing technology, Intel could significantly accelerate its AI chip development timeline rather than building comparable capabilities internally.
Industry Context and Implications
The semiconductor industry has undergone dramatic shifts as artificial intelligence applications drive unprecedented demand for specialized computing hardware. Companies like NVIDIA have captured substantial market share with their GPU-based AI accelerators, while newer entrants like SambaNova have developed alternative architectures optimized for specific AI workloads.
If completed, this acquisition would represent a significant consolidation in the AI chip market. It would also demonstrate how established semiconductor companies are responding to the AI revolution – by acquiring innovative startups rather than relying solely on internal development programs that might take years to mature.
For enterprise customers deploying AI systems, Intel’s acquisition of SambaNova could eventually lead to more integrated hardware solutions that combine Intel’s manufacturing scale with SambaNova’s specialized architecture. This could potentially create more competition in a market currently dominated by a small number of AI chip providers.
As the semiconductor industry continues its transformation toward AI-optimized hardware, this potential acquisition highlights how the competitive landscape is evolving through strategic corporate maneuvers rather than just technological innovation alone.