Intel Pursues Major Acquisition of AI Chipmaker SambaNova in $1.6B Deal: Sources Confirm Advanced Stage

2025-12-26 05:59:16

Intel Corporation (INTC) has entered serious discussions aimed at acquiring SambaNova Systems, an artificial intelligence chip designer headquartered in Palo Alto, California, in a transaction valued near US$1.6 billion when including debt obligations, according to Bloomberg’s sources close to the situation.

The potential acquisition represents Intel’s strategic push into custom silicon solutions for AI workloads. SambaNova, established in 2017 by researchers from Stanford University, has built expertise in designing specialized processors optimized for artificial intelligence applications. The company carried a valuation of US$5 billion following its 2021 capital injection round.

Key Figures and Background

Notably, Intel’s Chief Executive Officer Lip-Bu Tan holds the position of SambaNova’s chairman, while his investment vehicle Walden International participated as an early-stage backer of the startup. This existing relationship has facilitated current acquisition discussions, though Walden quotes and strategic perspectives from the fund underscore the complexity of negotiating multiple stakeholder interests.

The deal timeline suggests potential completion within weeks rather than months, though both parties have emphasized that final terms and closure dates remain fluid and subject to further negotiation adjustments.

Competing Interests and Alternatives

Despite advancing talks with Intel, SambaNova has maintained ongoing conversations with other investors and has received binding commitment letters from alternative acquirers. This positions the company to evaluate multiple paths forward, including remaining independent or pursuing other strategic transactions beyond the current Intel discussions.

The transaction reflects broader industry consolidation trends as established semiconductor manufacturers seek to strengthen capabilities in AI-optimized chip design through acquisition rather than internal development alone.

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