Facing intense pressure from rivals dominating the AI hardware market, Intel is reportedly in advanced discussions to acquire SambaNova Systems for about $1.6 billion, including debt. The talks could wrap up in the coming weeks, though no agreement has been finalized, reports Bloomberg. The potential deal is notable not only for its size but also because Intel CEO Lip-Bu Tan has longstanding ties to the startup.
The acquisition effort comes as Intel seeks to deepen its presence in the artificial intelligence hardware space. While Intel is historically known for its central processing units (CPUs), competitors like Nvidia have pulled far ahead in AI-optimized chips used for training and running large machine learning models. Therefore, securing SambaNova would give Intel immediate access to a custom AI chip architecture and accompanying software stack that are customized to handle high-volume inference workloads, where AI systems apply trained models to real-world tasks.
SambaNova was founded in 2017 by a team of Stanford University researchers with a vision to build AI processors that could outperform general-purpose graphics processing units (GPUs) on key enterprise tasks. The company’s technology centers on Reconfigurable Dataflow Units, specialized processors designed to accelerate AI operations by organizing computation around dataflow patterns rather than traditional instruction streams. This approach aims to boost both performance and energy efficiency for machine learning workloads, particularly in large cloud and data-center environments.
In its early years, SambaNova attracted heavyweight investors and raised large funding rounds during the venture capital boom in 2021, reaching a valuation of around $5 billion. But as overall funding conditions tightened and competition in AI hardware amplified, the startup’s value declined. For Intel, the acquisition price reportedly represents a discount relative to SambaNova’s prior private valuations, while offering a path to rapidly scale its own AI capabilities without years of in-house development.
Most importantly, Intel’s CEO, Lip-Bu Tan, plays an unusual dual role in this potential deal. In addition to leading Intel, Tan serves as chairman of SambaNova’s board and has historical ties through his venture firm Walden International, which was an early investor in the startup. However, that alignment offers both strategic continuity and scrutiny, as stakeholders weigh the influence of overlapping leadership on the transaction’s direction.
The timing becomes even more critical for Intel as the company faces mounting financial and operational pressure. Intel posted a $2.9 billion loss in Q2 2025, announced plans to lay off about 15% of its global workforce (~ 15,000 employees) and delay major chip projects. The situation is further highlighted by the US government’s recent 10% stake in Intel via an $8.9 billion investment, largely funded through the CHIPS Act and secure-chip programs, as the company battles intense competition from TSMC, AMD, and Nvidia.
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