Intel has signed a term sheet to acquire AI chip startup SambaNova Systems, despite a nonbinding deal that could be dissolved without penalty. The acquisition comes after the company’s interest in SambaNova was first reported in October last year. As part of its efforts to shift focus to AI chips, Intel CEO Lip-Bu Tan has been investing heavily in the startup. SambaNova, founded in 2017 by Stanford professors Kunle Olukotun and Christopher Ré, creates an AI chip platform for inference computing, a process used by large language models.
Intel’s interest in acquiring SambaNova is largely driven by the company’s need to catch up with the rest of the chip industry on AI chips. The startup has received significant funding, raising over $1.14 billion in early 2025 and reaching a valuation of $5 billion in April 2021. However, its value has dropped since then due to reduced investment from BlackRock. Intel’s recent investments in SambaNova and other assets aim to shore up the company’s debt, spin off non-core assets, and focus on AI-first strategies.
The acquisition is part of Intel’s efforts to expand domestic semiconductor manufacturing, which received an $8.9 billion infusion from the US government earlier this year. With the deal still pending regulatory approval and due diligence, it remains unclear whether Intel will be able to finalize the acquisition in the coming weeks or months.
Source: https://www.wired.com/story/intel-signs-term-sheet-sambanova-ai