Intel is making a move to acquire AI chip company SambaNova Systems, with the estimated value of the deal falling below $5 billion. The acquisition comes as Intel CEO Lip-Bu Tan looks to restructure his company’s debt and focus on an AI-first strategy.
SambaNova was founded in 2017 by Kunle Olukotun, Rodrigo Liang, and Christopher Ré, and has raised over $1.14 billion in funding since its inception. The company makes an AI chip platform for inference computing, a process used by large language models to make predictions based on vast amounts of data.
Intel’s interest in SambaNova is part of the company’s efforts to regain ground in the AI chip market. The acquisition could provide Intel with the expertise and technology needed to compete with market leaders like NVIDIA.
However, Intel has struggled with AI chip acquisitions in the past, most notably with Israeli company Habana Labs, which was acquired for $2 billion in 2019. The deal ultimately failed to deliver results, highlighting the challenges of integrating new technologies into an established company.
Despite these challenges, some analysts believe that SambaNova’s technology could be a game-changer for Intel. With the acquisition, Intel may finally have the opportunity to succeed where it has previously failed.
Source: https://www.techzine.eu/news/devices/137159/intel-nears-sambanova-deal-where-ceo-lip-bu-tan-is-already-chairman