Bloomberg reports that Intel might be buying SambaNova Systems, a company known for its AI processors. People familiar with the situation say SambaNova has brought in bankers to see what kind of acquisition interest is out there.
According to the report, SambaNova probably wouldn’t fetch the $5 billion valuation it had back in 2021 if a deal happens. Still, the talks are early, and there’s no telling yet whether Intel and SambaNova will actually move forward.
For Intel, buying SambaNova could give its AI efforts a boost. The company’s had a tough time gaining ground against Nvidia, whose GPUs still lead the market, even as Intel promotes its own chips as the cheaper option.
Intel and SambaNova’s story isn’t one of strangers meeting; it’s a continuation of an existing relationship. Lip-Bu Tan, now Intel’s CEO, was among SambaNova’s early believers through his firm Walden International. Intel Capital joined as an investor, as did SoftBank’s Vision Fund, a shared financial ally. When SambaNova named Tan its executive chairman last year, the partnership came full circle.
This possible deal comes at a time when Intel’s finances are looking stronger than they have in years. Since the spring, the company’s pulled in major investments from Apollo, KKR, and Japan’s SoftBank, plus a big one from the U.S. government. With that backing, Intel’s gearing up to make a comeback in the AI GPU space next year with a brand-new chip.
If Intel actually moves forward with the buyout, it’d be a noticeable change of pace. Back in April, the company’s CFO, David Zinsner, said that Intel wasn’t looking to make many new acquisitions anytime soon.
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